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While the glory days of arcade gaming may be long behind us, the digital world isn’t quite ready to forget an industry that was so beloved in its heyday. The birth of the home console dealt a crushing blow to arcade gaming and set the industry on a downward spiral that would strip millions of pounds from SEGA, Capcom, and Bandai Namco – the companies that used to practically run the digital world. Whilst these industry leaders have since found success in other spaces such as triple-A game development and publishing, many aspects of arcade gaming were left in the past once their profits took a downturn. Fortunately, retro has been making a comeback in the 2020s with vinyl records, polaroid cameras, and even flip-phones seeing resurgence. Arcade gaming looks to be one of the retro segments that will benefit from this with the industry projecting a compound annual growth rate of 5.2% in the US between the years 2023-2030. While this growth is a massively positive thing, it’s important that the arcade industry adapts with the changing times and relies on more than just nostalgia to safeguard its future. Below are some of the ways in which we anticipate that arcade gaming, as well as the wider arcade industry will adapt in order to reclaim its place as a global entertainment phenomenon.
When they first came onto the scene, arcade machines represented the flagship in graphics and gameplay. The lack of portable technology at the time meant that it simply wasn’t practical to have a gaming device at home and people of all ages would flock to arcades to check out the latest blockbuster releases. However, while home consoles and PCs have been the prime focus of development for tech hardware, arcade machines have been mostly neglected leaving even the newer cabinets with comparatively weak specs. Thus, it’s important that arcades provide unique experiences in order to set themselves apart.
Many people believe that the future of arcade gaming lies in VR – gaming experiences that are supported or entirely driven by virtual reality. While these fancy bits of kit are available in the forms of the Valve Index for Steam, PSVR for PlayStation, or a host of other stand-alone versions, they are still somewhat of a gimmick within the modern gaming scene with few gamers willing to meet the considerable price tag to gain access to the limited catalogue of IPs. This certainly isn’t to say that there is no interest in VR; in fact, it seems that more people than ever are looking to get a headset and making VR synonymous with arcade gaming caters to a major demographic of gamers who are unconvinced by the practicality of home VR but would be more than happy to try it given the opportunity.
2022 was a pretty significant year for the arcade industry with SEGA fully pulling out of the arcade business. Steadily selling stocks in their arcade division over the past few years, they finally announced that the iconic Japan-based arcade centres that were so popular during the 80s, 90s, and early 2000s were being rebranded to GIGO Entertainment under their new ownership. While this certainly isn’t representative of the state of arcade gaming, it does indicate that running an arcade can be a challenging endeavour with consumer demand not always covering the running costs of a relatively expensive business type.
Fortunately, it seems that a hybrid business model is on the rise with many retro-gaming venues now offering snacks, drinks, or even full meals. This offers business owners an alternate stream of income that can help to keep the arcade profitable even during periods of low consumer demand. These gaming cafes/bars have been popping up all across the UK and make for a great night out with friends; some are even known to host fighting game tournaments or social gatherings, perfect for meeting fellow retro gaming fans or simply enjoying an eatery/drinkery with a different kind of vibe.
Home arcade machines bridge the gap between a home console and classical gaming cabinet. By using emulation, they are able to play games from countless iconic franchises from a single, centralised hub in the same way as a modern PlayStation or Xbox. Naturally, since these are designed for private use, they can often be personalised to a far greater degree than their public counterparts with custom artwork, trims, buttons, and joysticks all being available. At Arcade Mania we’re happy to say that we’ve seen an increase in demand for home arcade machines with more retro game enthusiasts than ever before purchasing a functional piece of gaming history for their very own homes.
Young gamers are the future of the industry and will play a pivotal role in dictating gaming trends going forward. Unlike older generations who may have grown up playing traditional arcade games, they are more accustomed to modern technology and expect a certain level of interactivity and engagement in their entertainment experiences. This creates somewhat of an issue seeing as many retro games are relatively dated by today’s standards and growing accustomed to things such as difficulty spikes, clunky controls, and sometimes less than clear mission objectives may prove too much for the less patient gaming youth.
Making arcade gaming appealing to younger gamers may be the largest challenge that the industry faces. It’s going to be hard to compete with the high level of games that are currently available for home consoles and the industry may need to lean more on the social and multiplayer aspects of arcade gaming in order to attract a strong following.
At Arcade Mania, we are lovers of retro games and believe that the industry offers far too much cultural value to fade into obscurity. We’re happy to be able to provide custom-built arcade machines for the home that allow gaming fans to enjoy the classics that brought them so much fun over the years.
Interested in finding out more about our custom arcade machines? View our full mega arcade machine product range, or get in touch with our team directly to find out how we can help you create your dream arcade machine cabinet.
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