Namco Bandai: Wii killing arcades
by JC Fletcher 
{ Feb 7th 2008 at 3:00PM }
Now before you remind us that arcades are long dead, this story is about Japan. After a 38 percent cut in their profit forecast, in response to which Namco Bandai is closing between 50 and 60 of its arcades, the company's spokesperson Yuji Machida directed the blame at home video games. "A lot of the types of games that people played at an arcade can now be done at home," said the representative of the Namco Museum publisher.Machida mentions the Wii specifically, due to its popularity and its ability to simulate the kind of specialized controls that are a strength of many arcade games. While arcade ports are nothing new, and neither are arcade ports of games requiring special controllers (such as Dance Dance Revolution), a home console whose controller can substitute for many motion-based control schemes is. Also, it's a convenient scapegoat.
There could be truth to the idea that people are saving their game money for home consoles more than usual, but we doubt that has anything to do with any similarity in game types. It's still terrible for the poor arcade industry in the short term -- until some "expanded audience" gamers decide to get into competitive Tekken or something.
[Via Gamasutra]
Reader Comments (Page 1 of 1)
Nigeria @ Feb 7th 2008 3:14PM
This nostalgia for arcades is really misplaced.
They used to smell of piss and old "gentlemen" stood in the darkness oogling the young boys and girls. Also, the video games were always the same - Daytona USA, House of the Dead, DDR... - and the majority of floor space was taken up with gambling machines. Drunks would loiter outside, and around back, certain deals would be done. And the music was always awful.
I'm not complaining, I'm just saying the arcades sucked. Only seeing the experts on Virtua Fighter 2 made those trips worthwhile.
Brendon @ Feb 7th 2008 3:33PM
Hmm... My arcade memories are far different than yours. I'm guessing that's because they occurred fifteen years prior, and patrons tended not to pee all over the machines. They did leave plenty of cigarette burns, though.
Wow, I'm waxing nostalgic over the Reagan years and smoking indoors. Scary.
hvnlysoldr @ Feb 7th 2008 3:46PM
Perhaps arcade culture is different than in Europe and America. I was a on a ferry over the English channel. The arcade was decent with Metal Slug 5 and some others with not much gambling. However in an arcade in UK there were many more gambling than regular arcade games. And in an UK airport going back to America there were no gambling in the arcade.
(conspicuously looks at Ghost Squad, Umbrella Chronicles, and House of the Dead on Wii) Err have no idea what he's talking about.
SoshiKitai @ Feb 7th 2008 4:07PM
My memories of arcades were that of little children stealing your tickets from those small ticket-games... you were too busy trying to beat the time-limit to snatch it from their hands....
Also, the memory of master-fighters in fighting-arcade games, each new one had a huge line that followed... and I never dared challenge them, because I just plain sucked compared to them.
Also... the factions... I remember when there were those who worshipped Virtual On, and those who have never heard of it.
Then there were those who liked the oddball games... like the horse-racing game where you actually had to go on a horse and embarrassingly swing the damn thing back an' forth in a hideous cock-thrust-action.
I loved Tokyo Wars. Anyone else remember that game?
Does anyone else remember a game like it where it had robots holding guns instead? You know, with them taking your picture... I don't remember the name.
Oh! And that police game where it sensed where you were standing so you could dodge the extremely slow bullets!
... I hope the Tokyo Arcade is still up (in Little Tokyo). I loved and still love the Taiko Drum Games... It's always perfect.
Does anyone else remember scrounging underneath the Mortal Kombat arcade machine to see if there were any trapped quarters that hid from the light of the world? ...ah... yes, the bum-days were great.... where your parents would just leave you at the arcade so they could either go to the spa, casino, or outside for a smoke.
Jeff @ Feb 7th 2008 3:20PM
well they have to have *something* to blame, because it *certainly* isn't because arcade games are crappy re-hashes of 15 year old games...
This reads to me like the music industry blaming pirating for lower profits, without ever considering that their horrible selections and illegal price-fixing may have been at fault.
At least videogame companies are just *using* the scapegoat and not trying to sue the scapegoat.
Max @ Feb 7th 2008 10:12PM
A sale for a Namco title on the Wii is probably 100x more than they would of gotten from that consumer at their arcade games... Around the world too. In Australia there hasn't been arcade places near where I live for over 6 years.
Closing 50-60 stores is a move for the future
SoshiKitai @ Feb 7th 2008 4:15PM
Hey! Not all arcades sucked...
...Air Hockey tournaments forever!!!
- and besides Japan's arcades HAVE been waning since home console video games appeared. And it is a fact. Ever heard of Neo Geo Land? The GIGANTIC ARCADE that made all other amusement-parks-with-arcades and giant arcades look like toys? Yeah, due to SNK's demise because people started to DESPISE 2D games (horrible people), Neo Geo Land and all its glories DIED!!!
Neo Geo Land was a video game landmark... a true sign that video games could be a fun experience that brought so many together to actually consider it a culture.
Do you know how many big video game designer and directors to this day have arcades to thank for their love of video games?!
...I know, a lot of arcades sucked, especially here in the US... but in Japan, it's one of the single-most-appealing things that a gamer could love...
It's not an old-thing there! They still hash out thousands of intuitive arcade games every year! Tournaments are still held!
...but no... because of people like you, arcades are dying!
Taking away arcades from Japan is like taking away MMOs from Korea! And that's not an overstatement!
Jay @ Feb 7th 2008 4:17PM
I refuse to play dance games on a console. the pads are no where near the quality of arcade machines (at least with ITG and Pump....DDR sucks on both sides)
I say long live the coin-op (even though everywhere I play uses cards)
XDragon @ Feb 7th 2008 4:17PM
Arcades were cool when i was growing up because there was a huge delay for a home version to be released and the home versions were NEVER arcade perfect.
That has completely changed (for the most part) with the exclusions of some arcade games that haven't had home releases like Daytona 2 and House Of The Dead 4 or some of the games that have non-standard control interfaces.
Today's arcades seem dated but the few new and classic games always have crazy lines even though the rest of the arcade is almost empty, which makes it less appealing.
Even if you were using arcades to determine if you would buy a perticular game, now you can rent games not to mention easily pirate than in the past and lets not forget that some games are better on a home console than the arcades (Namco fighting games for example).
I think its unfair to say it's just the Wii's fault. There's presently nothing about an arcade that makes me want to go there as apposed to playing at home or online because some people did go to arcades just to have someone new to play against.
I believe the industry is evolving in a way which make arcades less inviting and to be honest, who's going to go to the arcade 2 to 3 time a week unless you're a student with a spare between classes?
All that's happening here is that Japan is starting to see the same trend as the Americas have already been through but its taken longer because gaming is a bigger staple in their culture.
Off topic kinda... so why hasn't Sega ever released Daytona 2, Super GT (NOT Sega GT which blows) and House Of The Dead 4 on a console yet? They can't still be making that much money in the arcades except for maybe HOTD4 because its a newer title!
SoshiKitai @ Feb 7th 2008 4:34PM
Once again, the topic is about: JAPAN!!!!
JAPAN JAPAN JAPAN JAPAN JAPAN!!!
For cripes sake, our arcades have never compared to Japan! And even if we have a great one now, it still wouldn't even dent it!
They still have new arcades to this day! They have millions of games we have never heard of! BLAAARGH!!!
XDragon @ Feb 7th 2008 4:52PM
SoshiKitai, did you not see:
All that's happening here is that Japan is starting to see the same trend as the Americas have already been through but its taken longer because gaming is a bigger staple in their culture.
The rest is based on my territory and between Japan having better arcades and being more culturaly emursed in video gaming, that's why its been doing so well up until now.
Try reading before you open your ignorant mouth.
Adv2k1 @ Feb 7th 2008 5:19PM
Good I hope this encourages more Japanese developers to make online games.
I enjoyed arcades when I was a kid, it was a fun social event and with cool prizes for playing some unique games. Over the years the prizes were horrible and expensive (40 tickets for a plastic comb) and the games never stayed updated.
When games cost a quarter or 50 cents that was good, but they went up to a dollar a play and time was still the same that was the end of the arcades for me.
I never got into DDR, and light gun games were fun diversion . During the n64 times is when arcades really died for me since most arcade units were not as powerful or equal with n64 in graphics.
The other thing that arcades did that turned me off is the insanely hardcore rich people who would lure around a single game. Try to play Street Fighter 2 you will play and die within 10 seconds, and try again and and get killed in 7 seconds without even a hit. How they got so good, and how they can be such jerks I never understood.
I don't go out to arcades to be pwned in front of a group of people laughing at me.
So I love my Wii and I'll never go to arcades again
Unbreakable_idea @ Feb 7th 2008 5:44PM
Really, they're losing lots of money? Because of the Wii? Taking away their arcade sales? Great. That's what you get, Namco Bandai. That's what you get. It's called karma. Soul Caliber 5 could have been a 500,000 seller on the Wii with online capabailities, and they shit on us with Legends instead. Eat it Namco Bandai. Eat your karma and like it.
Unbreakable_idea @ Feb 7th 2008 5:49PM
Oops, did I really just type that, I must have a fever. I meant Soul Caliber 4, obviously.
TheFreak @ Feb 7th 2008 6:52PM
I do miss the dark, gritty arcade rooms of yesteryear.
Makes me want to play some Tron. Y'know, with the blacklit arcade cabinet and such.
TooManyGames @ Feb 7th 2008 8:57PM
Arcade profits are going down for a couple reasons. First off arcades can't survive on 15 or less new games coming out every year, especially when they're just updates to older games (hunting games, DDR, etc...). Second, have you priced new arcade games lately? Sure, the corporate arcades can afford new machines, or bars with arcades (D&B) because they make their money on booze, not games. For an example, DDR SuperNOVA 2 just came out in the states, the full dedicated cab is $14,000. When Tekken 6 comes out it's going to be $10,000. How long do you think it takes an arcade to recoup those expenses, if they EVER see that money again? It's too risky for arcades to spend $10k for a machine that may not make that money back. If arcades aren't getting the newest and greatest machines then a lot of their customers will find someplace that will, and you've jut lost an arcade.
The arcade industry is killing the arcade industry, no one else is.
TooManyGames @ Feb 7th 2008 8:59PM
BTW, anyone who lives in the northeast should visit Challenge Arcade in Reading, PA (www.challengearcade.com) One of the best indie arcades in the nation, all the best earners from every generation, Pac-Man through DDR & Guitar Hero.
Deozaan @ Feb 8th 2008 2:38AM
Wait, so now video game companies are blaming video games for their problems?
That's like Jack Thompson blaming competent lawyers for his incompetence!
Anon_Guy @ Feb 10th 2008 6:40AM
Deozaan, excellent analogy.
Alot of the nostalgia listed in this post is excellent and certainly brings me back.
I think Namco/Bandai needs to realize that people would rather play with their friends in their own home than go out to an arcade and shovel quarters into a machine.
Pancake Mix @ Feb 10th 2008 6:49PM
As usual, very few people on the internet, from the torlls and noobs to even some of the veterans and admins I've seen, forget the simple concept of "difference of opinion". Obviously, not all of us went to the same arcade back in the day. I fondly remember Super Just Games, it had a freakin' Bumper Cars area and merry-go-round, that thing was huge! And there was a "free play" zone that included games liek Megaman Power Battles, The Simpsons, Pac Man, Galaga, and other fun games.
However, I DO think Namco-Bandai has a lack of anything to knew to blame for this issue. I mean, aside from getting new arcade games in, How have arcades changed at all? it's always been the same "bring bag full of change to dark room, wait in line for the good games, and burn through your bag of change in less then 2 hours." Can you imagine how different things would be if, for example, they started incorporating a sort of Wi-Fi within the arcade, linking various machines together for competitive play? That alone would boost sales. Or if some games for the consoles were adapted to arcades, rather then vice versa, Halo and Super Smash Bros. Tournaments would be just plain awe-inspiring.
So, I personally believe the upper management of Namco-Bandai is to blame for this issue, not the Wii, and I do feel sorry for the employee's who got laid off as their arcades were closed.
JC Fletcher @ Feb 10th 2008 6:55PM
Virtua Fighter 4 had arcade-based Internet play, and Taito made an arcade version of Half-Life 2.
mykie @ Feb 11th 2008 4:21PM
It's not just limited to the Wii, it's technology in general: We're seeing the same phenomenon with movie theaters. Now that it's cheap enough for everyone to own the technology in the home, there's no reason for anyone to leave their homes to rent it in a public location.
It won't be long until the Internet cafe is a thing of the past as well.