Sega closes down all of its arcades

Thousands of arcades in Japan, belonging to a legacy gaming company, are shutting down for good. The decades-old arcade industry might as well.

Sega, the video game company perhaps best known for creating Sonic the Hedgehog, is synonymous with arcade machines.

With humble beginnings in the late 1960s, the company really hit its stride with the arcade boom of the late 1970s as their arcade machines became hits all across the globe.
The company also found some success in the game console market with 1988's Sega Genesis further aided by their mascot Sonic the Hedgehog.

Over time, Sega has fallen from its heights, culminating in the closure of all their Japanese arcades after more than 50 years running.

Sega has sold their arcade shares to another Japanese company, with stores being rebranded accordingly.
Don't be mistaken - Sega will continue to develop both console and arcade games, but just won't house them in their own proprietary arcade centres.

The arcade market has shrunk considerably since its heyday, largely due to home video game consoles becoming mainstream.

For an upfront cost, gamers were able to enjoy quality titles at home without having to wait in line or shell out 25 cents every time you played.
However, with arcade games becoming more modernized throughout the years coupled with added features such as bars, arcades have seen somewhat of a resurgence.

Sega's traditional arcades in Japan weren't doing so well beforehand, but COVID was the final nail in the coffin.

Arcades faced a similar fate to other in-person businesses being hammered with reduced capacity restrictions and other safety measures.
Japanese arcades remain popular with baby boomers and the elderly, so hopefully they find a new place to nestle.

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