Written by Kris Rosado  on February 19, 2008

Specials: Remember when the arcade died here in the States? Well, it is happening again, this time on Japan's own turf. Ironic isn't it?

Tweet

Comments

Author's Note: This is merely a look at a few possible things that are going on with the Japanese arcade industry now and I am in no way suggesting that the scene is dead!

Japan: The holy land of the arcade. While the stories have been greatly exaggerated, Japan's arcade scene has been pretty healthy for the last few years. They still have a yearly convention called AOU (Arcade Operators Union Amusement Expo), where publishers show off their wares. Last year we saw the introduction of the Silent Hill arcade cabinet and this year they will be showing off the new King of Fighters as well as many other games including a public location test of Street Fighter IV.

Arcades in Japan are usually housed inside tall buildings (a lot different than the Chuck' e 'Cheese we would have to go to) with each floor consisting of a certain game type. The bottom usually consists of crane machines and the top is where the hardcore stuff was at. Yep, the arcade scene is definitely still as healthy as ever over thereЕ or is it?

Earlier this week, it was reported that Namco Bandai was closing sixty of their arcade centers, blaming high gas prices and an overwhelmingly successful home console market. On top that; Sega Sammy has also been looking in the red, having to lay off 400 employees and closing 110 arcades. Both of these companies are expecting severe reductions to their profit forecasts and they are not the only ones.



You do not have to wonder why people would rather not travel to arcade centers when they can pretty much have their own arcade right inside their own homes, this is the exact same lesson that the U.S. consumer base learned years ago and now suddenly Japan is catching up. No longer do people need to fill cabinets with quarters to get their thrills, instead they can just insert a disc and have the same experience.

One could argue that the social aspect is what has been keeping arcades alive, but even that has very little weight to it anymore. Want to face your friend in a one on one match of a certain title? No problem, for that is what services such as the Playstation Network, Xbox Live and others are for.

In 2007, the Nintendo DS alone sold about 8 million units with the next closest unit being the Nintendo Wii at 5 million in Japan. These are astonishing numbers for a country the size of Japan. After seeing these kinds of numbers, it no longer becomes hard to believe that the Japanese arcade scene is indeed in trouble. It only gets worse from here on out with more and more home console games being aimed at different demographics hit the market.

As a matter of fact, Nintendo has exploited an entirely new market base via Gimmick games. Gimmick games used to be something you could only find inside an arcade, but with the introduction of the Nintendo Wii this is no longer true.

Motion gimmick games such as a baseball title, are played at home with the use of the Wiimote. On top of that, the possibilities of Wii Fit have not just arcades but gyms as well taking notice. Using the Wii Fit board, one may soon not need to travel to the nearest arcade to get their SSX on. Even Super Smash Bros. Brawl allows people the ability to bet virtual money on matches to target the gambler in the family.

Want to go deeper than just Nintendo? OK, let's talk about the growing demographic problems Japan is facing. The population's age is quickly becoming unbalanced do to a decrease in births coming off a baby boom years before. Youths are more becoming more self-focused and are choosing not to get full time jobs creating a struggling workforce. Some arcade centers have started posting job listings hoping that more youths will get jobs, leave their parents homes, and help aid the economy. With no money, how can arcades make their profits in the first place?

Also worth mentioning is that the arcade centers have become an increasingly dark place to hang out at. With stories of how the Yakuza operate within these places floating around, people have begun avoiding arcades altogether in fear of their lives. While this cannot be openly confirmed, it still raises the question: are arcades safe to be at?

While it is way too early to even begin saying the Japanese arcade market is facing death, it is still interesting to ponder the thought. Right now, the Japanese arcade scene is nowhere near as bad as the American arcade scene ever was, but if these financial projections are any indication, it is only getting worse and worse with each passing year. With the audience shifting to home gaming entertainment and a struggling demographic, the place for the Japanese arcade may just end up in the depths of nostalgia, eventually, just like its American counterpart.