Capcom Blames Gas Prices for Ailing Arcade Business
While gas prices can be blamed for a lot of things, I don’t know how it affects the arcade business. Capcom has blamed the declining Japanese arcade market on the risign cost of fuel, among other factors, in its financial results for the 2007 fiscal year.
The earnings report notes that the company opened up nine new arcade plazas across the country last year despite “sluggish growth” in the arcade market. Capcom stated that increasing fuel costs played a role in reducing arcade patronage.
“There were several factors that negatively affected performance: the dissemination of home video game machines, intensified competition, declining popularity of card dispensing games for children, and the decrease of visitors to those arcades located in suburban shopping malls due to rising gasoline/petrol prices,” Capcom said.
Additionally, Capcom noted that its arcade operating income took a big dive in 2007, causing nearly 10% drop in their net profit for the arcade business.