What Do You Call An Arcade?
An arcade is a recreational venue featuring coin-operated games and amusements that people can play by inserting coins, tokens, or swiping cards. Arcades burst onto the scene in the early 1970s and soared to peak popularity as vibrant hangout spots during the golden age of arcade games in the 1980s and early 90s.
While declining due to competition from home consoles in subsequent decades, arcades have retained cultural significance even through ups and downs. Now, with the rise of esports, virtual reality (VR), and bar-arcades fusing gameplay with food & drinks, the resilient coin-op industry is regaining steam.
The Evolution of Arcades
The origins of amusement arcades can be traced back to the early 20th century penny arcades. These were filled with peep shows, vending machines dispensing candy and fortunes, and tests of strength. As technology advanced, mutoscopes, kinteiscopes, and electromechanical amusement rides such as bumper cars became popular.
Video game arcades as we know them today emerged when Nutting Associates created the first mass-produced coin-op videogame Computer Space in 1971, followed by the smash hit Pong in 1972. Sega, Taito, Nintendo and Atari soon scaled up manufacturing, kicking off a competitive golden age spanning the late 70s through the late 1980s. Income from North American video arcades peaked at nearly $8 billion in 1981 as Pac-Man Fever swept the nation.
Table 1: Highest Grossing Arcade Games 1978-1988
| Year | Game | Revenue |
|---|---|---|
| 1978 | Space Invaders | $2.7B |
| 1980 | Pac-Man | $1B |
| 1981 | Donkey Kong | $280M |
| 1981 | Defender | $1.5B |
| 1982 | Pole Position | $60M |
The 1990s brought a drastic arcade decline, with income plunging to $2.1 billion in 1999. Home console gaming soared in popularity with Sony PlayStation‘s 1994 launch. And without ongoing innovation, arcades struggled to motivate players to leave their living rooms. By the mid-2000s, traditional arcades were viewed as remnants of the past despite some modernization efforts with redemption games.
Yet rumors of the industry‘s demise were premature. In recent years, boutique bar-arcades offering craft beer and unique titles have brought modest resurgence. VR headsets are now immersing guests in virtual worlds. And with esports tournaments broadcasting gameplay to millions, skill-based spectator titles are reengaging audiences. Global 2022 arcade gaming revenue exceeded $22 billion – a new high since 2005.
Popular Types of Arcade Games & Machines
Arcades typically house a variety of distinct machine types and game genres:
Video Games – Electronic games played on built-in arcade cabinets rather than external displays. Different inputs include joysticks, buttons, light guns, steering wheels and more. Genres include fighting, racing, shooting, puzzles, rhythm/dance and platformers.
Pinball – Electro-mechanical games spanning classic titles to modern machines with video screen integration and complex features. Players use flipper buttons to keep steel balls in play and earn points through game objectives.
Redemption/Merchandiser – Winners earn tickets redeemable for prizes. Games rely on skill (basketball hoops), luck (crane grabs) or endurance (stopping reels precisely). Prize availability inspires repeat play.
Novelty/Carnival – Strongman high striker tests, fortune tellers, claw grabs and more. These can blend entertainment with physical skill challenges.
Simulators – Enclosed vehicle mockups with projection screens placing players inside immersive racing, flying and mech suits. Motion hydraulics boost realism. Networked setups enable competitive multiplayer.
From basketball and whac-a-mole to immersive motorcycle racing pods with surround displays, innovation continues branching classic concepts toward emerging technologies.
The Allure of Arcades
What drives people both today and historically to feed pockets full of quarters into arcade cabinets? Core motivations span:
Nostalgia – Arcades tap into cherished childhood memories of glowing marquees housing Donkey Kong and Street Fighter II challengers. Even millennials fondly remember SpongeBob redemption tickets.
Game Variety & Rotation – No single system offers the unique title breadth found within arcade walls. And games cycle frequently so return visits reveal fresh options.
Competition & Community – Watching friends or strangers play with envy-inducing skills provides entertainment alone. And bonding through side-by-side co-op or versus fuels camaraderie.
Spectating & Hype Moments – Crowds organically form around players on epic marathon runs or fighters flawlessly chaining combos. The energy transfers to audiences, a phenomenon leveraged in esports arenas.
Immersive Experiences – Large screens, cockpit-style controls and surround sound transport players into engrossing settings unmatched at home. Dedicated gear optimizes genres like rhythm games.
Yet financial viability remains an industry pain point today. With home console games priced at $60-70, earning back cabinet R&D and licensing costs through $1 plays requires immense volume the current market can‘t deliver at scale. A downturnforcing closures of locations with limited appeal wouldn‘t surprise industry watchers.
Silver living linings exist nonetheless. The arcade scene survives through a niche community ethos prioritizing atmosphere and loyalty above profit maximization. Paired with bar & restaurant spending driving location synergies, vibrant pockets catering to devotees will play on for years to come.
