Market Size and Growth
2024The expansion of the global arcade game market is particularly large. Data from Statista showed that the worldwide arcade gaming market size will amount to $1 billion by 2023, escalating at a CAGR of 6.8% in 2024. The substantial expansion is being driven by the growth of in-person social entertainment, an area seemingly more valuable than ever post-pandemic. Moreover, the use of novel technologies, like virtual reality (VR) and augmented reality (AR), has taken arcade games to a higher level of interactivity than before, which contributes to increasing market reach.
With respect to specific market performance, US-based Round1 Entertainment company is the epitome of enterprise in the recovery area. The company opened 50 new stores in 2023 with a sales increase of one-fifth, which shows a bright spot in the Western properties arcade game market. That same year in Asia, the number of arcade game halls grew from 5,000 to 6,200. So, it is a market showing robust growth dynamics with newer trendsetting consumers increasingly being young generations.
Customization and Localization
More and more shopping malls, among others in the entertainment industry, are seeking to tailor specific game experiences to meet their customer’s needs. By 2023, programmable software systems were installed on over 70% of arcade equipment that allowed operators to adjust the content provided by games dynamically. Developers can use this to offer individualized solutions for specific venues and markets, helping operators drive greater user engagement and revenue.
Arcade games are also adopting the localization trend. Capcom, the Japanese company that developed Street Fighter and other classic video games, is an example they adapted to regional cultures in Japan by adjusting their language skews for different Southeast Asian markets, leading them up to 35% sales increases for some of these localizations. Capcom also succeeded in expanding its global market share by integrating local cultural elements into stage design. This suggests local language and culture adapted games can be a very effective means of increasing your market penetration, especially in fledgling markets.
Innovation in Revenue Models
In 2024, the revenue model of arcade games has changed dramatically, with traditional coin-operated models becoming less popular. Arcade operators are increasingly moving to a subscription- or membership-oriented model as well. More than 35 percent of operators in North America have transitioned to a membership-based business, charging monthly fees ranging from $20 to $50, according to the IBISWorld report. This model not only ensures a steady flow of income but also creates repeat customers that help with customer retention. In 2023, Dave & Buster was able to increase its subscription revenue by a total of around 22%, at $29.99 for every month on monthly membership fees alone.
On the other hand, in-app purchases do provide a new revenue path for arcade games. Capcom has entered virtual items on the Street Fighter arcade version so that players can purchase character costumes as well as skill enhancements and other things. After releasing this feature, it boosted their game revenue by 30. At the same time, this multi-revenue structure can prolong the player’s life cycle and give developers long-term revenue.
Arcade Games Combined with the Experience Economy
Deeply Integrate with the Experience Economy, Empowering Richer Entertainment Consumption Scenarios More gaming arcades that provide customers with extra minutes in shopping malls and entertainment venues are creating innovative experiences. Hong Kong-based Playdium Entertainment Center released a VR + arcade package service in 2023 integrated at the level of its new and changing sales by more than forty percent, which means that this was a good solution, according to reviews. All these can not only make arcade games more attractive but also increase the flow of people and consumption in entertainment venues.
