Since home game consoles can create the same or better visual effects as arcade game consoles, people have begun to play games at home more frequently.
After that, the new crown pneumonia epidemic broke out, so that many large arcade game centers in Japan were closed, and may never come back.
A new report in the Japan Times pointed out that in 1986, there were more than 26,000 gaming centers in Japan. By 2019, this number will drop to a little over 4,000, and this number will be even smaller in 2021. Due to the epidemic, some of Japan’s largest gaming centers closed, and SEGA Akihabara No. 2 was also closed last year. Just three weeks ago, SEGA was forced to announce the closure of another gaming center in Tokyo, the nine-story SEGA Ikebukuro GiGO.
Last year, SEGA sold 85% of its arcade game division after experiencing a record loss. Capcom and SE also noticed the losses in their arcade division, but they were able to make up for these losses because of their record game sales.
SEGA stated in its recent financial report that as the frequency of lockdowns from the new crown epidemic gradually decreases, the situation may improve, but Sega also stated that it will take “a period of time” to restore passenger flow. When it does appear, there is no guarantee that people will flock back to the arcade game center in Japan.
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