Arcades aren’t dying, they’re Evolving (2024)

Barcades may be the future of arcade gaming

Arcades aren’t dying, they’re Evolving (3)

The video game arcade was wildly popular during its era in the 1980s and early 1990s, however, many people familiar with the industry has decided that arcades, if not entirely dead already, have begun dying off.

In the article “The death and resurgence of arcades in America” on ABC news, they postulated that the arcade began dying “because they stopped being profitable.” Many sources, including this article, also cited the prevalence of home gaming consoles in bringing about the death of the arcade. According to Play meter magazine’s state of the industry reports published in 2015 and 2016, only around 2,500 arcades exist in the United States today. Compare this to the “Golden Age” of arcades, which according to an article by The Verge reached 13,000 dedicated arcades across the United States. This definitely indicates that the arcade is an industry that has shrunk considerably.

However, this exclusive observation of traditional arcades is failing to see the bigger picture and future of arcades. It’s indeed true that home console gaming has overall absorbed the gaming audiences, but that doesn’t mean an establishment people can visit to play video games isn’t profitable. One such example is the bar arcade or “Barcade,” a bar or pub that also features arcade cabinets, either just free to play with purchase of alcohol, actual coin operation, or hourly “free play” deals where you pay a fee to play any of the games there. And they have been very successful! To bring it into a local context, Pinball Jones is an arcade bar operating in Old Town Fort Collins, and if you know anything about Fort Collins, you know there’s a lot of bars and therefore competition in the bar space. Despite this Pinball jones has been able to be in business since 2011, and has been able to operate two locations since 2017.

Arcades aren’t dying, they’re Evolving (4)

Some have discredited the barcade as a fad or novelty or saying they aren’t real arcades, and while they may definitely feel like a novelty, this is just the most economically feasible way for arcades and arcade culture to survive. In An article by Polygon about running arcades in modern times, they discuss the price of an arcade cabinet: “Prices for the cabinets can widely vary, on average costing around $1,000 a unit.” With such a high price just to invest in a cabinet, not even mentioning electricity and repair costs for cabinets, they become a large investment. And with the advent of the home gaming console, it becomes more and more difficult to justify having a business exclusively built off arcade cabinets. That’s why barcades are such an enticing prospect, they offer the same feeling and games of an arcade, but they can attract people to their establishment without the games being their only way to stay afloat. Not only that, but a majority of arcade cabinets that exist today are from the 80s and 90s, and the kids who grew up in those eras are adults now, so it’s a major draw to invoke that nostalgia.

Other different variations of the arcade have also popped up in recent years, with food arcade establishments (who also serve alcohol) like Dave and Busters appearing, but their success appears to also be taking root.

Overall, if arcades want to persist and stay in the mainstream, but be able to maintain their culture, they need to evolve, and barcades appear to be just the evolution they need.

Arcades aren’t dying, they’re Evolving (2024)

FAQs

Why did arcades lose popularity? ›

The growing popularity of martial arts action games and sports games also influenced this growth period in arcade history. However, arcades declined in popularity in the late '80s, as home consoles like the Nintendo Entertainment System (NES) kept children at home and away from arcades.

Why did arcades fail? ›

A culprit behind the loss of arcades' popularity could quite possibly be due to what is known as the “video game crash of 1983.” This was a large occurrence in the video game industry that was caused by high levels of competition in the industry that caused an oversaturation of video games, often of poor quality, ...

Can arcades make a comeback? ›

The revival of arcades is fueled by gamers seeking entertainment options beyond the digital realm, and the industry is experiencing growth with revenue expected to reach ~$5.48 million by 2030.

Are arcades still popular in 2024? ›

The Global Arcade Gaming market is anticipated to rise at a considerable rate during the forecast period, between 2024 and 2031. In 2023, the market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon.

Why don't arcades exist anymore? ›

But, eventually, the economics became less attractive, and the arcades started closing or changing direction. These days, classic arcade machines are expensive to maintain and require specialist technical knowledge; the parts aren't being made any more.

Why were arcades banned? ›

There were also reports of increased crime associated with arcades due to lack of adult supervision. Many cities and towns implemented bans on arcades or limiting businesses to only a few machines by the mid-1980s.

When did arcades start dying? ›

Up until about 1996, arcade video games had remained the largest sector of the global video game industry, before arcades declined in the late 1990s, with the console market surpassing arcade video games for the first time around 1997–1998.

When did arcades go out of style? ›

While the fighting game craze helped arcades persist through the '90s, their popularity steadily declined. By the early 2000s, game consoles were more commonplace, eliminating the need for arcades.

What was the downfall of the arcade? ›

Arcade popularity died out because the technology advanced until home consoles reached parity with arcade machines, and after that, there was no point to arcade machines. See, in the early days, arcade machines had two paradoxical advantages over home consoles: they are big and they are expensive.

Are arcade grabbers rigged? ›

The claw is programmed to grab tightly only part of the time

Some people think the claw machine is so hard to win because the stuffed animals are packed so tightly together. But the bigger reason is more insidious than that: the claw machine is programmed to have a strong grip only part of the time.

Are arcades basically gambling? ›

After all, in a larger view, you're trading in a certain sum (usually money) to win a more significant or valuable reward. But many state gambling laws don't claim arcades to be gambling for a few reasons. In most cases, arcade games are games of skill, meaning you have some control over the outcome.

How many arcades are left in the US? ›

There are 6,156 Arcade, Food & Entertainment Complexes businesses in the US as of 2023, a decline of -1.7% from 2022.

Are arcades still profitable? ›

It can be very profitable and lucrative, with ROIs for games ranging from a couple of weeks to a couple of years. Even the longer ROIs are still a great investment and return compared to most industries.

What was before arcades? ›

Before the age of arcades, there were amusem*nt halls. In these halls, people used to get together and play on coin-operated machines like pinball. These games were much simpler than some of the games you'd see in an arcade today. Pinball machines were very popular and was the foundation of arcades.

When did arcades peak in popularity? ›

Video games were introduced in amusem*nt arcades in the late 1970s and were most popular during the golden age of arcade video games, the early 1980s.

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