i think arcades as a business in America is pretty much already dead.. all the arcades have either died or incorporated other things, the arcade units are'nt business enough on their own anymore.
one arcade that opened up is more a pool hall then a arcade, another that opened up has a lot of nice units.. but they also have playstation/ xbox tournaments and such.. the arcade units still have a place but are'nt the star's anymore.
other arcades shift into a pay-to-enter sort of policy where the games are on free play but 5-10 bucks might get you in for the day or other similar business models.
of course teh lone machine at the corner store will be around for a long time because people will blow a quarter here or there while buying a 6 pack or something.. of course they're not pulling the money in with both fists but they're just a side attraction to the store's usual business anyway.
as time goes on you will see interest diminish.. most people want a arcade unit for nostalgia, however i believe....
Everything goes in cycles. You know the saying, "Everything old is new again." Generation X-ers will be looking to relive their younger days throughout their lives. Also, there will always be a link to the classics as video games get more and more advanced. Just look at the popularity of old movies, old music, etc. It can be appreciated by more than just the generation that created it.
eventually arcade popularity will surge again, i understand it's still quite strong in japan.
People paid for Pacman when they couldn't play it at home. They will still pay for a gaming experience they can't get in their house now.
to true, many games never made it to the early consoles, and if they did rarely was a good port, often radically changed from the arcade concept.
the graphics early on was unmatched by anything at home, today pc's and console games can match and exceed the arcades.. but it's not all about graphics.
the whole arcade exp starts with inserting the quarter (or token).. there was something special about the feel of a big arcade unit. the joy stick in your hand the way the slick concave buttons felt on your finger tips.
the large monitor in you face that your mother would have scolded you for at home, later games offered big booming bass that rumbled the whole cabinet, the arcade filled with the sound of chatter, yells and game music.
there was nothing like meeting a stranger at the MK's machine, beating them to a pulp and then executing them in a most brutal fashion all the while with a smirk and some trash talk for good measure.
like wise there was nothing better then getting 4 buddies.. or even complete strangers together to kick some turtle ass on TMNT.. or one of the other many beat'em up's, or playing one of the wrestling games that will have you soaking wet from the button bashing, cabinet rocking, joystick twisting marathon.
of course not all that can be captured these days.. arcades are sparsely populated even at peek hours, no strangers to vanquish or team up with, the sound may be there but there the white noise of a empty arcade filled with only attract sounds, is distinctly different from that of a busy one.
at home the quarter experience can be had.. but is ultimately diminished knowing you haven't really lost anything.. it's still your quarter, or even worse the game is set to free play and you can just mush your way though games designed to eat quarters.. this really takes the challenge out, in the arcade i rarely seen the ending of a game.. with mame it's cake usually.
there is still one thing that holds true, the one thing that can not be taken away from arcade machine..
controls. oh sure you can get a box with real arcade controls.. not the same.. it's close but not he same.
no nothing will ever match the feel of standing next to someone at a upright.. mashing the buttons and making that arcade rock with fury, you can take a lot of things away from the arcades but not the feel.
this is especially true for cockpit racer/flight games, or anyone remember Suzuki 8 hour? bike racer you got on a mock motorcycle.. or the authentic driving exp of hard driving.