Namco Bandai are blaming Nintendo's Wii for damaging the increasingly declining arcade industry.
It seems that the Wii's "arcade-like" experience at home is one of the contributing factors to the decline of the Arcade industry. Namco Bandai has announced that 50 to 60 of its arcades will have to shut down with a downward revision to its earnings outlook.
"A lot of the types of games that people played at an arcade can now be done at home"
Yuji Machida - Namco Badai
Machida stated that money had shifted from being spent in arcades to buying similar games to play in the home; for most a better long-term investment. He added that the increase in oil prices had affected the industry, with Japanese folk spending less time at shopping malls where arcades are mainly located.
Namco Bandai cut its full-year net profit forecast by 38 percent to 16.5 billion yen ($155 million).
Thanks to Next-Gen.biz