It had became an apparent fact that arcades are no longer the hot spot for teenagers and young adults to loiter around after school or work. Brick and mortar gaming businesses are no longer as profitable as what it used to be only several years ago. Video game enthusiasts are taking their gaming addiction to their home or portable gaming handheld systems rather than bothering to commute to a local arcade. Especially now that Internet gaming is among the most popular form of video games, gamers are still able to socialize with each other in an online environment rather than in a physical setting. Although this may cause some to believe Internet cafes would be a profitable business, but the majority of Internet gamers still prefer playing in the comfort of their own homes or even in small groups in a single home.

Even a development representative from Sega, one of the largest manufacturer of arcade games, admitted in an interview that the future for arcades in both Japan and America is very pessimistic. It all has to do with economy of scale. When there is a dramatic decline in the demand for arcade gaming machines, then arcade manufacturers will receive fewer orders from arcade shop owners, which will then drive up the manufacturing expense required to produce each machine.

Recently in Japan, many arcades were shut down due to slowing demands, but there will always be a market for arcades in Japan due to its readily available location that is accessible to an overpopulated nation. However, unlike Japan’s dense population, there will most likely be fewer and fewer arcades in America.

Oct 07th by admin