Apparently, they've been big in the 70's, 80's and 90's. Sure, as home consoles came around, arcades got a little less popular, but were still around. In the 2000's, it just straight plummeted down though. I think around 2005, the arcade around me shut down, which I took for granted at the time, but now I miss the nostalgia of it.
I'm 22. If I were 40 or even 30, I'd probably have a greater fondness toward them. But I did go to the arcades about once a month. But I understood why home consoles overtook arcades. It was cheaper. You could play as much as you want whenever you want. You don't have to drive anywhere. And games were big adventures instead of just 2 minute game sessions that are hard enough to make you want to insert more quarters when you die.
I know Japan still has arcades but the U.S. doesn't really. Unless you count casinos. I would imagine in modern times, building a machine that could run Pac-Man would be MUCH cheaper than one in 1990. And also, imagine what arcade games would be like in HD.
The social aspect of gaming has also changed. Physically interacting with people (including strangers) at a public place was the way to do it with arcades. Consoles were great co-op for close friends, but nowadays online play is taking over everything and most games today lack in offline multiplayer. Online has created lots of opportunities and there's always a ton to do offline. But I certainly miss when playing games WITH people was common.
There may very well be a resurge in arcades again, though they'll probably be different than the ones we used to know. I guess supply and demand works in cycles. People get sick of something and then they miss it. We're novelty chasers.
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