The Death and Resurgence of Arcades in America (2024)

— -- Traditional arcades, once popular after-school hangouts and staples of shopping malls, have long been replaced by smartphone technology and at-home gaming systems like the Nintendo Wii and Sony’s PlayStation.

But it wasn't always like that.

Tommy Williams remembers when they were on “every block” where he grew up in Newport Beach, California, and how they later started to disappear, all shutting down by the late '80s and early '90s.

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“When you had Nintendo and Sega, and the console war started, I think that’s when they closed up,” Williams said.

The popular games still exist, albeit in another form: Today’s smartphones and tablets can play old favorites like "Pac Man" and "Mortal Kombat."

“It’s transformed in the past couple of decades, the access to games,” said Williams, who does public relations for ZQGame, a video game company in Los Angeles, “from the boardwalk to having it in the palm of our hands.”

The Death and Resurgence of Arcades in America (1)

But recently, the retro games have popped up in other places -- as nostalgic attractions in bars, bowling alleys and restaurants, for example. There are even museums where people can gawk at the vintage machines, now baffling to kids raised on shrinking smartphones and increasingly tiny tablets.

Actually, the sale of video game machines has remained steady in the past couple decades, according to Andrew Eloff, co-founder of the video game manufacturer Raw Thrills Inc., known for producing games like "Big Buck Hunter" and "H2Overdrive."

While traditional arcades are gone, he said, the machines are still around -- just in different spaces.

"The story of the death of the arcade comes around every so often," he said. "The arcade is definitely dead, but what's come up in its place is really cool -- these nostalgic, retro bar arcades and also these big mega-arcades like Dave & Busters."

Many adults today have fond memories of afternoons wasted sliding quarters into those bulky arcade games.

“There was something special about once or twice a summer getting to go to the arcade and play pinball and Pac Man,” said Chris Trimper, whose family owns Marty’s Playground in Ocean City, Maryland.

He says the business, a longtime landmark on boardwalks, is struggling, noting that “it’s hard to make money a quarter at a time.”

The Death and Resurgence of Arcades in America (2)

Ken Kalada, owner of Yestercades in Red Bank, New Jersey, takes a different approach to keeping the doors open -- he charges $8.75 an hour instead of 25 cents per play.

Kalada opened his arcade when others had all but disappeared -- in 2011.

“It was something I’d always wanted to do as a kid,” he told ABC News. “It’s something you don’t see anymore, from the classic arcade cabinets to the social environment.”

But Kalada’s arcade isn’t quite like the ones he remembers from childhood. For one thing, he offers a mix of games -- traditional arcade machines along with home consoles that today’s kids are used to.

Young, uninitiated arcade-goers gravitate toward redemption-style games that reward players with tickets, or popular crane games, where pricey prizes like Coach purses and Xboxes are always just outside the crane’s reach.

“It’s not enough for them to go and get a high score and put their initials on a board because they can do that at home,” said Michael Meyers, a video game industry executive. “You can just go on Xbox and be on the leaderboard for that.”

The Death and Resurgence of Arcades in America (3)

He said arcades began dying off because they stopped being profitable.

The Death and Resurgence of Arcades in America (2024)

FAQs

What is the resurgence of arcades? ›

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.

What caused the downfall of arcades? ›

Further impacting the arcades, the rising popularity of home consoles threatened the arcades, since players did not have to repeatedly spend money to play at arcades when they could play at home.

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.

What killed the arcades? ›

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, ...

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.

When did arcades lose popularity? ›

The golden age of arcade games began to wane in 1983 due to a plethora of clones of popular titles that saturated arcades, the rise of home video game consoles, both coupled with a moral panic on the influence of arcades and video games on children.

When did arcades peak? ›

The years between 1978 and 1982 saw unprecedented growth across the entire video game industry. A January 1982 cover story in Time magazine noted that the most popular machines were pulling in $400 a week in quarters and the number of dedicated arcades in the United States reached its peak with around 13,000.

When did the golden age of arcades end? ›

The Golden Age of Arcades: 1978 to 1983

The release of Space Invaders brought on the golden age of the history of arcades, beginning in 1978 and ending around 1983. The golden age of arcades was a truly important time in the history of arcades.

Why are arcades addictive? ›

“These games may induce addiction due to the satisfaction of winning which reinforces the behaviour of playing the game. However, playing the game does not necessarily lead to gambling addiction,” said Dr Jeslyn Lim, co-founder of Thrice Psychology Clinic.

What is the oldest arcade in the United States? ›

Spring Lake Arcade is an amusem*nt center in Burrillville, Rhode Island. It was opened in 1930 and is believed to be the oldest penny arcade business in America. The place is known for offering classic arcade games.

Why did the arcade industry crash in 1983? ›

By June 1983, the market for the more expensive games had shrunk dramatically and was replaced by a new market of rushed-to-market, low-budget games. Crane said that "those awful games flooded the market at huge discounts, and ruined the video game business". A massive industry shakeout resulted.

Are arcades still viable? ›

And the answer is a resounding YES…. but…. Like anything, owning and operating arcades and arcade games can be highly profitable if you know what you are doing.

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.

Do amusem*nt arcades still exist? ›

Arcade Games Past and Present

Classic video games that spring to mind include Ms. Pac-Man, Donkey Kong, Pac-Man, and Street Fighter II. Despite the perception that those days are over, arcades are still in operation. The arcades of today are distinct from those of the 1980s.

Why were they called arcades? ›

/ɑˈkeɪd/ An arcade is a structure made by enclosing a series of arches and columns. The word's roots go back to the Latin word "arcus," which means arc or bow. An arched, covered passageway with shops or stalls on the sides is also called an arcade and was a precursor to the shopping mall.

Why did arcades become popular? ›

The Golden Age of Arcades: 1978 to 1983

The game quickly became popular due to its simple mechanics and its interactive audio system that encouraged competition. The release of Space Invaders brought on the golden age of the history of arcades, beginning in 1978 and ending around 1983.

How did arcade go viral? ›

Starting in late 2020, "Arcade" went viral on TikTok, resulting in renewed success on various weekly charts, including in the United States, where the song became a sleeper hit. It debuted at number 100 on the Billboard Hot 100 on 17 April 2021, and peaked at number 30 by 4 September.

Are arcades still popular in 2024? ›

The resurgence of arcade games in Family Entertainment Centers shows no signs of slowing down.

What year did arcades peak? ›

The video arcade was at the height of its popularity in 1982. Gamers lined up to play “Dig Dug” and “Joust,” placing quarters on the console to claim the next game. The iconic sounds of “Pac-Man” and “Q*Bert” were heard in hundreds of arcades nationwide. Video games were big business.

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