In recent years, there has been a notable shift in the arcade industry from traditional arcade games to crane games, leading to a decline in the number of traditional “city arcades.” The fiscal year 2023 saw a record high of 18 bankruptcies and closures of game centers, marking a second consecutive year of increase and the highest number in the past five years. Over the last decade, the number of game center locations has decreased by nearly 8,000, signaling a trend of industry consolidation.

While the Japan Amusement Industry Association reported a 10% increase in operational revenue in fiscal year 2021, indicating a recovery from the pandemic, the rising popularity of crane games poses a challenge to traditional arcade-centered layouts in maintaining customers. Moreover, increasing operational costs such as the consumption tax hike, coin exchange fees, and rising electricity rates are adding to the industry’s challenges.

Smaller-scale game centers are particularly impacted by the rising costs of game machines and prizes for crane games, leading to their accelerated phase-out. In contrast, large chain stores in shopping malls are expanding their presence and capturing family demand, highlighting the shifting dynamics in the arcade industry and the challenges faced by traditional game centers.

Source Yahoo