Japanese Arcades Are Reportedly "On Their Last Life" (2024)

Arcades had been a dying business for a while now. Ever since home consoles could produce equal or even better visuals than actual arcade boxes, people have just been playing at home more often. Nowadays, arcades are basically nonexistent in the West and Europe, and it seemed that Japan would remain the only holdout, the last bastion of the noble arcade.

Then the COVID-19 pandemic hit and even Japan’s mighty multi-story arcades are closing down, likely never to return.

A new report from the Japan Times notes that there used to be well over 26,000 arcades in Japan in 1986. By 2019, that number had fallen to just over 4,000, and in 2021 that number is much smaller. Some of the biggest arcades in the country closed thanks to the pandemic, with Sega’s iconic Akihabara Building No. 2 closing down last year. Just three weeks ago, Sega was forced to close down another Tokyo arcade, this time the nine-story Sega Ikebukuro Gigo.

Last year, Sega sold off 85% of its arcade gaming division after suffering record losses. Capcom and Square Enix also noted losses in their arcade divisions, but they were able to make back those losses and then some thanks to record game sales.

Sega's most recent financial statement said there was some reason for optimism with COVID lockdowns receding in frequency, but also said that it would take "some time" for foot traffic to recover. And when it does, there's no guarantee people will flock back to Japan's arcades.

Next: 35 Years On, Sega Classic Out Run Is Still Pure Video Game Magic