Well this does not come as any surprise.
The arcade scene has been taking quite a beating since the original Nintendo and Playstation hit the market many moons ago. Things are only going to get worse.
The home of the arcade scene is feeling the brunt of Nintendo's latest console assault. We aren't talking just Mom and Pop type arcades either. Big ones from Namco and Sega are closing down.
Wii idmc.
"Arcades are expensive, noisy and filled with cigarette smoke," said 15-year-old Gene Sato, adding he'd rather save his money to go to a theme park. "Besides, I can stay home and play NBA Live on PlayStation 3."
But it's not just the Wii. Industry officials and analysts tick off a long list of culprits.
With widescreen TVs in households across Japan and games with cutting edge graphics and audio standard fare, the traditional video arcade experience can easily be replicated in the home.
Analysts also estimate that the vast majority of Japanese kids own a handheld game player such as a Nintendo DS, or PlayStation Portable.
Even if they don't, games can be played on computers or cellphones. Mobile phones are also blamed for diverting youths away from arcades because a large share of kids' pocket money often goes towards paying cellphone bills.
Full article below.
http://news.yahoo.com/s/nm/20080518/tc_nm/japan_arcades_dcInterestingly enough, I saw this in the Daily Express as well, May 21st 2008.