Namco Blames Wii for Arcade Closures
milsoRgen noted a story about Namco Bandai is shuttering between 50 and 60 arcades in Japan and blaming the success of the Wii for the closures. "A lot of the types of games that people played at an arcade can now be done at home," said company spokesman Yuji Machida. To be fair they also blame the high cost of gasoline as well.
To be honest, I doubt its the gasoline prices. Allot of arcades over in Japan are usually within walking distance of schools and residental areas. They are just freakishly expensive.
Take the Gundum Pod Game: http://www.youtube.com/watch?v=VNSodeMJ2u0
If they made the games cheaper, I think arcades can last longer there. But I doubt it as most of these "pod" like machines are pricey as it is.