State of the U.S. Arcade Industry 2004
Gamaroo writes "1up.com has posted an article on arcade game machines, the loss of the profit margin and the future of the industry. In their words: "There was a time when an arcade operator in America could buy a Ms. Pac-Man machine for less than $1,000, let it sit in an arcade, bar or storefront, and see that game make back over 30 times the initial investment. In 2004, that kind of profit margin is little more than a pipe dream.""
Twenty years ago, home arcade games were expensive and the games you could find in an arcade were much better.
Now, home consoles are comparatively cheap and the games are great -- and many fantastic games will run on a general-purpose PC.
Why shell out quarters (four at a time!) in an arcade any more?
This is a market which had to die when the price/performance ratio of home gear went through the floor.