Why Japanese Arcades Are Now Dominated by Crane Games: The End of the Arcade Golden Age
Introduction: The Changing Face of Japanese Game Centers
In the 1990s, Japanese game centers buzzed with an unmistakable energy. Lines of players waited their turn at Street Fighter II cabinets, while the sounds of shooting games and racing simulators filled the air. But step into a major Japanese arcade today, and you'll witness a dramatically different scene.
The floor space is now dominated by rows upon rows of crane games—known locally as UFO Catchers—their glass cases filled with colorful plushies, anime figures, and character merchandise. The legendary "fighting game temples" of yesterday have transformed into "prize game specialty stores."
What drove this remarkable transformation?
The Current State of Japan's Arcade Industry: Hard Numbers
Japan's arcade industry has been contracting for decades. According to Teikoku Databank research, approximately 8,000 arcade locations have closed over the past 10 years, with a staggering 30% disappearance rate in just the last five years alone.
From roughly 87,000 game centers in 1993, the number plummeted to approximately 10,000 by 2021. Bankruptcies and closures have increased for two consecutive years, reaching 18 cases in fiscal 2023—the highest in five years.
Small and medium-sized neighborhood arcades have been hit especially hard. Rising electricity costs, coin exchange fees, and consumption tax increases have squeezed operating margins thin. Analysis shows that arcade operators now earn just 6 yen in profit for every 100 yen in sales—a razor-thin margin that makes survival challenging.
Five Reasons Why Crane Games Became the Main Attraction
1. Dramatic Differences in Revenue Efficiency
The revenue structure of traditional arcade games versus crane games tells a compelling story.
Fighting games and rhythm games typically cost 100 yen per play. A skilled player might occupy a machine for an hour or more, limiting the venue's income. Moreover, modern arcade games require network connectivity, with operators paying transmission fees to manufacturers for each play. The actual profit remaining for the arcade amounts to just a few dozen yen per session.
Crane games, by contrast, complete a single play cycle in mere seconds to tens of seconds. Players repeatedly insert coins attempting to win prizes, generating continuous revenue. With prize costs estimated at 100-300 yen, just a few plays generate sufficient profit margins.
2. Shifting Customer Demographics
Traditional arcades catered primarily to hardcore gamers dedicated to mastering specific titles. Today's visitors are predominantly "casual users"—couples, families, and groups looking for shared entertainment.
These customers can't easily abandon their companions to focus intensely on single-player games. Crane games, however, offer perfect group entertainment where spectators and players share the excitement together.
Young women have become notably visible at major chain locations, attracted by plushies and figures featuring popular anime characters. These customers represent entirely new demographics who previously had little connection to arcade culture.
3. The Rise of Home Gaming and Smartphones
Fighting games, racing games, and other titles once exclusive to arcades are now available in high-quality versions on home consoles and smartphones. The necessity of visiting game centers has diminished significantly for these traditional gaming experiences.
However, crane games remain impossible to replicate at home. The thrill of physically controlling the arm, the suspense of watching prizes wobble, and the satisfaction of winning something tangible—these experiences exist only in physical locations.
4. Prize Quality Improvements and IP Power
Crane game prizes operate under police agency regulations limiting retail value. This cap has gradually increased over the years, currently standing at 1,000 yen.
This regulatory relaxation has enabled dramatic quality improvements. Oversized plushies, detailed figures, and limited-edition items unavailable for regular purchase have proliferated. These "can't buy even if you wanted to" rare prizes create powerful incentives.
Collaborations with popular anime franchises like ONE PIECE and Demon Slayer have proven especially successful since the 2010s, attracting people who don't normally play games but desperately want merchandise featuring their favorite characters.
5. Controllable Store Operations
Traditional arcade game revenue depends heavily on the popularity of individual titles. Expensive cabinets can become expensive decorations if games fail to attract players. Market trends shift rapidly, and today's hit may be tomorrow's dust collector.
Crane games allow operators more control over outcomes through prize selection and difficulty settings. Stock popular character merchandise, calibrate appropriate challenge levels, and stable returns become achievable.
Major Companies Leading Industry Transformation
GENDA has emerged as a rapid growth story in the arcade sector. Founded in 2018, the company acquired Sega Entertainment in 2020 and now operates approximately 330 locations under the GiGO brand.
GiGO stores center on crane games, with the Ikebukuro flagship boasting around 280 machines—among the largest concentrations in central Tokyo. Other major chains including Bandai Namco Amusement's "namco" and Taito's "TAITO STATION" have similarly expanded their crane game offerings.
Round One has invested heavily in "Giga Crane Stadium" zones featuring massive crane game areas. Locations that increased their crane game ratios reported sales growth of 1.8 times.
Online Crane Games: A New Market Frontier
Crane game popularity has extended into the digital realm. "Online crane games" allow players to remotely operate real machines via smartphone apps or browsers, with the market reportedly reaching approximately 30 billion yen by 2024.
Since Cyberstep launched the predecessor to "Toreba" in 2011, nearly 50 companies have entered this space. During COVID-19 restrictions, usage surged as homebound consumers sought entertainment options.
Won prizes ship directly to players' homes, creating new opportunities for those in rural areas or with limited time for arcade visits.
Inbound Tourism: Why Foreign Visitors Love Japanese Crane Games
Japanese crane games have become major attractions for international tourists. Convenience store chain Lawson began installing in-store crane games in 2022, surpassing 1,000 equipped locations by 2025. Tourist areas like Kyoto and Odaiba report particularly strong foreign customer interest.
Several factors explain crane games' international appeal: exceptional prize quality, machine precision, and the "skill element" that rewards practice. Unlike pure luck-based games, crane games offer improvement through technique—perhaps appealing to gamers' competitive instincts.
Future Outlook: Where Is the Crane Game Market Heading?
The crane game market has reportedly reached approximately 300 billion yen, experiencing what industry observers call a "third boom." Crane games now account for over half of total amusement facility revenues, truly becoming the industry's savior.
Challenges remain, however. Rising prize costs, increasing electricity expenses, and ongoing operational pressures create difficult conditions. Customer complaints about difficulty levels and occasional controversies over settings also surface.
Sustainable growth requires balancing customer satisfaction with appropriate profitability. Industry evolution continues through online service integration, exclusive prize development, and enhanced international visitor accommodation.
Conclusion: What's the Arcade Scene Like in Your Country?
Japanese game centers have transformed dramatically in response to changing times—from "arcade game temples" to "crane game paradises." This shift reflects evolving revenue structures, customer needs, and gaming culture itself.
Crane games have grown into a massive industry in Japan, but what about elsewhere? Does your country have game centers? Are crane games popular, or do other games dominate? What entertainment experiences are unique to arcades in your region?
We'd love to hear about the arcade scene in your country—please share your experiences in the comments!
References
- https://news.yahoo.co.jp/articles/e17e3f89cdac98a93a1652a9d977ad3eb317da03
- https://www.sbbit.jp/article/cont1/178162
- https://toyokeizai.net/articles/-/750577
- https://president.jp/articles/-/85169
- https://www.4gamer.net/games/999/G999905/20240408005/
- https://note.com/hip_ivy6431/n/ne2e506b10907
- https://gentosha-go.com/articles/-/63205
- https://www.ktv.jp/news/himitsu/221101/
- https://soranews24.com/2025/08/14/crane-games-in-japanese-convenience-stores-getting-more-and-more-popular-especially-with-tourists/
- https://japantoday.com/category/features/lifestyle/lawson-adds-ufo-catcher-crane-games-to-convenience-stores-in-japan
Reactions in Japan
Tried UFO Catchers for the first time on my Japan trip and they're totally different from American claw machines! The prize quality is amazing and they're actually set up to be winnable. Spent about $20 but got two One Piece figures. Totally worth it!
We have crane games in Taiwan too, but they're not at Japan's level. The exclusivity of prizes is incredible. I visit arcades every time I travel to Japan to get anime goods you can only find there.
Honestly, crane games are legalized gambling in my opinion. No matter your skill level, machines can be set to be unwinnable. I wonder how Japanese people justify this.
We don't have arcades this big in Germany. Japanese crane game specialty stores are truly impressive. Hundreds of machines lined up, it's like a theme park. This is uniquely Japanese culture.
Korean arcades are also getting more crane games, but Japan is the origin. The variety of prizes is different. Korea focuses on K-pop idols, while Japan has rich anime and game merchandise.
Australian shopping malls have crane games too, but the prizes are garbage. Looking at Japanese crane game prizes, you wouldn't think it's the same game. The quality difference is stark.
In France, traditional arcade games are still more popular. It's sad that Japan has shifted to crane games. It used to be the holy land of Street Fighter and Virtua Fighter.
Mexico doesn't have this level of arcade culture, so I love watching Japanese crane game videos on YouTube. Someday I want to visit Japan and experience the real thing. I want to try online crane games too.
When I visited the SEGA building in Akihabara, I was shocked that all 6 floors were crane games. It's an unbelievable scale from an American perspective. It perfectly matches Japanese otaku culture.
Crane games are popular in China too, but Japanese machines and prizes are favored. There are also online crane games customized for China, and the market is growing. Japanese companies' expertise is valuable to learn from.
Crane games aren't very popular in Brazil. I couldn't understand why Japanese people are so into them at first, but after learning about exclusive prizes and anime collaborations, it makes sense. They cleverly stimulate collector psychology.
I've been to Round One in Canada and it was interesting how they try to recreate Japanese arcades. But nothing beats the real scale in Japan. Including the unique Japanese hospitality and service.
Russia barely has this kind of arcade culture. Watching Japanese crane game videos, it seems like such peaceful and fun entertainment. I really feel the cultural difference.
It's a different dimension from crane games in British pubs. Japanese ones have artistic prizes and high-tech machines. This isn't just gaming, it's an entertainment industry.
As a Japanese person living in America, I'm always surprised by how arcades have changed whenever I visit home. It's sad they're all crane games now, but from overseas, Japanese crane game culture is truly unique. It's something to be proud of.