Is the Arcade Industry Growing? A Look at the Resurgence of Classic Gaming

For many, arcades evoke memories of neon lights, the clatter of joysticks, and the thrill of chasing high scores with friends. But after decades of decline, many wonder: Is the arcade industry growing again? The good news is — yes! The arcade industry is experiencing a surprising resurgence, fueled by nostalgia, innovation, and evolving entertainment trends.

🎮 Why the Arcade Industry Is Growing in 2025

1. Nostalgia-Driven Demand

Millennials and Gen Z are rediscovering the magic of arcade gaming. The retro aesthetic, simple gameplay, and social nature of arcades offer a welcome break from screen fatigue and online anonymity.

Many businesses are capitalizing on this trend by opening barcades — a blend of arcade games and craft cocktails — which have become wildly popular in major cities worldwide.

2. Innovative Arcade Experiences

Arcades today are no longer just rows of static cabinets. The industry is innovating with:

  • Virtual reality (VR) and augmented reality (AR) games

  • Interactive motion simulators

  • Escape room-style challenges

  • Rhythm and dance games with real-time feedback

This fresh take on arcades attracts new players seeking immersive entertainment beyond home consoles.

3. Rise of Home Arcade Machines

Affordable, plug-and-play arcade consoles and DIY kits are booming in popularity. Brands like Arcade1Up, Youwei Trade, and AtGames offer retro-style cabinets preloaded with classic games, making it easy to bring the arcade experience home.

4. Growing Competitive & Social Gaming

Arcades foster face-to-face multiplayer competition, a rarity in the age of online gaming. Tournaments and community events at arcades build loyal local followings and bring people together offline.

5. Expanding Market for Claw Machines & Redemption Games

Prize-winning machines remain a profitable staple in family entertainment centers and malls. These machines attract casual gamers of all ages, boosting arcade revenue.

📈 Industry Stats & Projections

  • The global arcade gaming market was valued at approximately $3 billion in 2023 and is expected to grow steadily over the next five years.

  • The growth is driven primarily by Asia-Pacific, especially Japan, South Korea, and China.

  • North America and Europe see steady growth in barcades and retro gaming venues.

  • The home arcade console market is projected to expand with increased consumer interest in nostalgia and at-home entertainment.

✅ Where To Experience The New Wave of Arcades

  • Barcades like Barcade (NYC), Up-Down (Midwest US), and Emporium (Chicago)

  • Family Entertainment Centers such as Dave & Buster’s and Main Event

  • Retro arcades and museums in cities like Tokyo, Los Angeles, and London

  • VR arcades that combine gaming with immersive technology

🎯 Bringing Arcades to Your Home

Interested in joining the arcade revival from home? You can start with:

  • Plug-and-play retro arcade consoles from Gameloopx

  • DIY arcade cabinet kits

  • Arcade-style LED lighting to recreate that authentic vibe

Final Thoughts

The arcade industry is far from dead — it’s evolving and growing, blending nostalgia with innovation. Whether you’re visiting a local barcade, building your own cabinet, or trying out VR arcade games, the excitement of arcade gaming remains as strong as ever.

Ultimate Tips: Best Arcade Machines for Home & How to Set Up Your Own Barcade

Whether you want to bring classic gaming nostalgia into your living room or create the ultimate hangout spot, choosing the right arcade machines and designing your barcade setup is key.

🎮 Best Arcade Machines for Home: What to Look For

1. Arcade1Up Cabinets

  • Affordable (~$300–$500)

  • Authentic arcade feel with real buttons and joysticks

  • Preloaded with classic games like Pac-Man, Street Fighter, Galaga

  • Great size for most rooms

2. Plug-and-Play Retro Consoles

  • Compact, portable

  • Thousands of built-in games

  • Connects to TV via HDMI

  • Perfect for casual gamers or small spaces

3. DIY Arcade Kits

  • Build your own cabinet with Raspberry Pi or mini PC

  • Customize games, controls, and art

  • Can be budget-friendly or high-end depending on parts

4. Multi-Game Cabinets

  • Higher-end machines with hundreds of classic and modern games

  • Often include networking for online leaderboards or updates

🏠 How to Set Up Your Own Barcade: Key Tips

Step 1: Choose Your Space

  • Minimum 4x4 feet per cabinet

  • Good lighting and ventilation

  • Easy access to power outlets

Step 2: Pick a Theme

  • Retro 80s arcade

  • Modern fighting game lounge

  • Mixed barcade with neon lights and music

Step 3: Add the Right Furniture

  • Bar stools or comfy chairs

  • Small tables or counters for drinks/snacks

  • Shelves or racks for collectibles

Step 4: Lighting & Atmosphere

  • LED strip lights behind cabinets or under counters

  • Neon signs or posters of your favorite games

  • Background music or arcade soundtracks

Step 5: Multiplayer & Social Setup

  • Include 2-player machines or multiple cabinets

  • Set up tournament nights or casual competitions

  • Use social media or apps to organize meetups

🛒 Where to Buy Great Arcade Gear

  • Gameloopx Arcade Machines & Retro Consoles — affordable, quality options with free shipping

  • Amazon & Walmart — for Arcade1Up and other brands

  • Etsy & eBay — for DIY cabinet kits and parts

  • Local classifieds — sometimes you can score used arcade cabinets

Bonus Tip: Start Small and Expand

If space or budget is tight, start with one or two machines and add more over time. Portable plug-and-play consoles are perfect for testing the waters before investing in full-size cabinets.