A recent research report released by financial analysis firm Teikoku Databank shows that in the previous fiscal year, 18 arcade halls in Japan went bankrupt. The number of arcade halls in Japan has decreased by nearly 8000 in the past decade.
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The report points out that before the outbreak of the epidemic in 2020, the number of arcade halls had decreased by 30%. In recent years, the increase in operating costs, such as the rise in consumption tax, coin exchange fees, and electricity bills, has further accelerated this trend.
The report states that in recent years, doll catching games have become mainstream, making it difficult for arcade halls to attract customers through traditional arcade layouts. The increasing attention to the game of catching dolls also means that companies are susceptible to the impact of rising prize costs. An analysis of the profitability of arcade operating companies reveals that for every 100 yen (approximately 0.65 US dollars) in sales, there is only a 6 yen (approximately 0.039 US dollars) operating profit.
Even before the outbreak of the epidemic, the number of arcade halls in Japan had been on a downward trend. In 2019, there were only 4022 arcade halls in Japan; In 1986, there were 26573.
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