Study reveals that 8,000 arcades have closed in Japan over the past 10 years
, by Quentin
Although video games are deeply rooted in Japanese culture, and Japan is the world's third-largest market in the sector, things don't seem to go well for arcades over the last decade.
Indeed, a recent study by financial analysts Teikoku Databank reveals that the market has gone down since the 2020 pandemic, which led to a 30% drop in the number of arcades.
And this trend is only getting worse, as operating costs, consumption taxes, currency exchange charges and electricity rates rise. In addition, profitability is not looking good, given that operating profit averages just 6 yen per 100 yen of sales.
Source: videogameschronicle.com