A report from Teikoku Databank, a Japanese financial analysis company, reveals a significant decrease in the number of arcade cabinets in Japan, with nearly 8,000 establishments closing down in the past 10 years. Additionally, there has been a record-high of 18 arcade centers shutting down in Japan in the last 5 years, with two consecutive years of an increase in closures.
Analysis of the performance of companies operating arcade centers shows that the business generates an average profit of only 6 yen (approximately 1.44 baht) per 100 yen (approximately 24 baht) in sales. The arcade cabinet business in Japan has been in decline for some time, with only 4,022 cabinets in 2019 compared to a peak of 26,573 cabinets in 1986. In 2022, Sega also withdrew from the arcade business in the Akihabara district of Tokyo after over 50 years of operation.
Source: VGC
TLDR: Teikoku Databank reports a significant decrease in arcade cabinets in Japan, with many closures over the past decade. Analysis shows minimal profits in the arcade business, leading to a decline in the industry. Sega also exits the arcade business in Tokyo’s Akihabara district.
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