Is the Arcade Business Model Truly a Thing of the Past?

By Blogtrepreneur

Back in the day, arcades used to a standard of modern life. Fun for the whole family, social hotspots for teenagers, and escapes from the stresses of modern life, arcades used to be incredibly popular because they fulfilled a purpose, but with the rise of modern technology and the way the world has turned, there’s no denying that arcades are dying out.

However, is the arcade business model really going to disappear completely, or is there still a future? Today, we’re going to find out.

The Decline of Arcades

Sure, arcades still exist in many places and are still very popular. Beachfront and piers usually find themselves loaded with people who are visiting and just wishing to spend an hour or so getting rid of their pennies. There are still establishments that offer gaming facilities similar to those that existed in the 80s and 90s.

Many arcades are attempting to pick up the slack by allowing access to new forms of entertainment, such as gaming cafes that will enable people to play more modern computer games in a social environment or offer adult gambling forms of entertainment, such as slot machines and betting situations. However, the decline is still happening since many people opt for other forms of in-home entertainment.

The Revitalised Business Model

While traditional arcades may be falling by the wayside, that doesn’t mean they’re are out for good. In fact, many arcade owners are discovering that there’s a new emerging market that has been relatively untapped until now. Gamers and arcade lovers from the peak eras of the 80s and 90s tend to love still the nostalgic feel that arcades bring, and many establishments are digging deep to see what this can offer.

In major cities, such as New York, Los Angeles, and Chicago, there has been an explosion of ‘grown-up’ arcades where original lovers of the experience can go to relive the times they loved back when they were children. These businesses offer a new experience, usually involving food and bar access, all alongside some of the classic retro games they grew up playing, all with their friends while looking to relax and escape the stresses of modern life in a social and fulfilling way.

These are known as arcade-bar hybrids, and they are becoming very successful. Just look at Dave & Busters, a huge hybrid chain that took over $332 million in revenue just in Q1 of 2018. It’s clear that these family experiences are working. Still, it’s going to be an effort for older, more outdated arcade businesses to follow suit and offer their own experience along these lines.

If these older businesses fail to adapt to the modern changes of wanting a modern experience with the nostalgia of older experiences, it’s clear these businesses won’t see the end of the decade. To follow along with changes and updates, be sure to check out sites like businesstrex for more.


Like all industries in the business world, the arcade business model is changing quickly, and while this may be some unfortunate, it’s definitely changing the game and opening up new opportunities for both customers and businesses alike, and it will be exciting to see where the industry turns in the future.

The post Is the Arcade Business Model Truly a Thing of the Past? appeared first on Blogtrepreneur.


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