Sega closes down all of its arcades

Sega closes down all of its arcades

This story about sad endings, boiled down, in 1:26 minutes.

What's the fuss?

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

The situation

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

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

Boiling it down

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.

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