There is still a market for arcade games, just not in the US. In Korea and Japan, it is quite a big thing. For many hardcore arcade players like me, the arcade still offers thing which a home console cannot.
1. Controls. Nothing beats an arcade stick for fighting games. Can be rectified by purchasing a Hori arcade stick for consoles, but it's expensive. The 360 and ps3 sticks are different and you have to purchase it twice to use it on both consoles
2. Competitive play. Online is not good enough. Fighting games are precision based games. A delay of 200ms is enough to screw up my combos. Arcades provide a lag free environment with endless amount of opponents.
3. Interaction with people. It's good to meeta regular bunch in the arcade and exchange opinions and knowledge. At home, you are confined to your Ivory tower. The learning process is slower.
All these points apply to the more hardcore crowd. I'm surecasual arcade goerswon't concern themselves with all these issues.
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