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In recent years, there has been a notable shift in the arcade industry from traditional arcade games to crane games, leading to a decline in the number of traditional “city arcades.” The fiscal year 2023 saw a record high of 18 bankruptcies and closures of game centers, marking a second consecutive year of increase and the highest number in the past five years. Over the last decade, the number of game center locations has decreased by nearly 8,000, signaling a trend of industry consolidation.
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While the Japan Amusement Industry Association reported a 10% increase in operational revenue in fiscal year 2021, indicating a recovery from the pandemic, the rising popularity of crane games poses a challenge to traditional arcade-centered layouts in maintaining customers. Moreover, increasing operational costs such as the consumption tax hike, coin exchange fees, and rising electricity rates are adding to the industry’s challenges.
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Smaller-scale game centers are particularly impacted by the rising costs of game machines and prizes for crane games, leading to their accelerated phase-out. In contrast, large chain stores in shopping malls are expanding their presence and capturing family demand, highlighting the shifting dynamics in the arcade industry and the challenges faced by traditional game centers.
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Source Yahoo