Arcade game
In 1903, a London-based company called The Cricket Match Company released a mechanical game where players hit a pitch into holes to simulate cricket. This was one of the earliest examples of coin-operated amusement machines designed for public entertainment. Before this era, fair amusements relied on staffed games that required human operators to manage prizes and outcomes. The invention of vending machines in the 19th century paved the way for automated attractions like fortune tellers and strength testers. Entrepreneurs soon began housing these devices in dedicated spaces known as penny arcades near the turn of the 20th century. These venues charged a single penny per play, making them accessible to working-class audiences.
The reputation of penny arcades shifted dramatically when mutoscopes featuring risqué images became their most popular attraction. Young men flocked to these establishments, drawing criticism from moral guardians who viewed such content as corrupting youth. The birth of the film industry in the 1910s further drew audiences away from traditional arcade offerings. To survive, manufacturers created new interactive machines based on carnival games but reduced to automated forms. One notable example was Baffle Ball, a pin-based precursor to modern pinball machines. Players used plungers to launch balls at targets with limited attempts. Skee-Ball gained popularity after being featured at an Atlantic City boardwalk arcade during the Great Depression of the 1930s. Economic hardship made inexpensive entertainment highly desirable, boosting sales of these mechanical games.
In 1941, International Mutoscope Reel Company released Drive Mobile, an electro-mechanical driving game that used a steering wheel to control a model car over a painted road. This machine represented a shift toward combining electronic circuitry with mechanical actions to create simulated environments for players. By 1958, Kasco introduced Mini Drive to Japan, extending the cabinet length and allowing longer gameplay sessions. The US arcade industry stagnated by 1961, prompting Japanese distributors like Sega to develop original games independently.
The late 1960s marked a turning point when Nakamura Manufacturing Company released Periscope in 1965. This submarine simulator used lights and plastic waves to simulate sinking ships while players looked through a periscope to fire torpedoes. Sega later distributed it globally, making it the first arcade game to cost a quarter per play. This pricing strategy became a standard for decades. Periscope also established audio-visual novelty games as a category using advanced special effects to provide immersive experiences. Another milestone arrived in 1969 when Sega released Missile, which may have been the first arcade game to use a joystick with a fire button. These innovations laid groundwork for future video game controls.
Indy 500, released by Kasco in 1968 and licensed to Chicago Coin as Speedway in 1970, featured rotating discs illuminated by lamps to produce pseudo-3D graphics. It sold over 2,000 cabinets in Japan and more than 10,000 in North America, becoming one of the biggest hits of its time. Nolan Bushnell worked at an arcade during his college years where he observed customers playing such machines and learned how maintenance shaped business operations. The electro-mechanical golden age in Japan and the technological renaissance in North America created healthy environments for video games to flourish.
Atari released Pong in 1972, marking the first commercially successful arcade video game after two earlier attempts failed to gain traction. Galaxy Game and Computer Space had tried packaging mainframe computers into coin-operated cabinets but lacked widespread appeal. Following Pong's success, companies like Midway, Bally, Williams, Sega, and Taito entered the market. Technology evolved from transistor-transistor logic integrated circuits to microprocessors, enabling new waves of arcade video games.
Taito's Space Invaders arrived in 1978, sparking a golden age that included Pac-Man (Namco, 1980), Missile Command (Atari, 1980), and Donkey Kong (Nintendo, 1981). These titles defined an era before the market waned in 1983 due to oversaturation, growing home console competition, and moral panics about youth impact. The video game crash of 1983 further disrupted the industry. Recovery began by 1986 with software conversion kits, beat 'em up games like Kung-Fu Master, and motion simulator attractions such as Hang-On and Out Run.
The Nintendo Entertainment System drew crowds away from arcades toward the end of the 1980s, causing another brief decline. Fighting games like Street Fighter II (1991) and Mortal Kombat (1992) revived interest in early 1990s arcades. 3D graphics popularized through Virtua Racing and Virtua Fighter kept arcade systems ahead of home consoles until the late 1990s. By 1997, 1998, the console market surpassed arcade video games globally for the first time.
Pinball machines initially faced bans because governments classified them as games of chance rather than skill. In the 1940s, players had no means to control outcomes after launching a steel ball onto the table. Fears that pinball was a tool of the devil led many cities to outlaw these devices entirely. New York City imposed its ban in 1942, which lasted until 1976 when journalist Roger Sharpe demonstrated his ability to call shots to specific lanes before city council members. This demonstration helped overturn the prohibition by proving pinball required skill.
Manufacturers distanced themselves from gambling associations by labeling games "For Amusement Only" and eliminating redemption features. They asserted repeatedly that their products were games of skill despite initial resistance. Pinball machines beyond the 1970s advanced with solid-state electronics and microprocessors handling game logic. Modern versions include complex mechanical actions supported by detailed backplate graphics. Meanwhile, crane games occupied a grey area between chance and skill under the Dominant Factor Test used by regulators. Conditions like claw strength and prize stacking remained unknown parameters making success partly luck-based.
Video poker machines emerged in the 1980s replicating gambling concepts within arcade settings. These titles generally fell under games of chance categories confined to jurisdictions with favorable laws. Most other arcade video games continued treating challenges as pre-set programming requiring player skill rather than random outcomes.
Until about 1996, arcade video games dominated the global video game industry before declining sharply in the late 1990s. The console market surpassed arcades for the first time around 1997, 1998. Western arcades served highly specialized experiences unable to be replicated at home during the 2000s. These included lines of pinball machines combined with entertainment options like restaurants or bars. Dance Dance Revolution required specialized equipment while others incorporated motion simulation or virtual reality technologies.
Asian regions maintained popularity until the late 2010s when numbers began waning significantly. Japan saw its arcade count drop from approximately 26,000 locations in 1986 to roughly 4,000 by 2019. The COVID-19 pandemic in 2020 and 2021 drastically impacted the industry forcing many large long-standing Japanese arcades to close permanently. Despite these challenges, certain types of electro-mechanical games remained popular through to the present day including air hockey whac-a-mole and medal games.
Medal games started gaining traction with Sega's Harness Racing (1974) Nintendo's EVR Race (1975) and Aruze's The Derby Vφ (1975). These titles simulated gambling-like experiences without violating strict laws against actual gambling in countries like Japan. They converted money into special coins players could redeem back into prizes creating unique gameplay loops distinct from traditional arcade formats.
By the early 1970s pinball machines occupied select arcades at amusement parks bars lounges and solitary stores. Manufacturers carefully distanced their products from gambling associations while adding features like "For Amusement Only" labels. Pinball machines beyond the 1970s advanced with solid-state electronics handling game logic alongside complex mechanical actions supported by detailed graphics. Air hockey created between 1969 and 1972 by Brunswick Billiards employees became another enduring attraction alongside whac-a-mole and medal games.
The first whac-a-mole game Mogura Taiji released by TOGO in 1975 inspired Bob's Space Racers to produce Whac-A-Mole in 1977 for North American markets. Arcade centers in Japan flooded with mole buster games during the late 1970s before introducing them internationally. Sega released MotoPolo in 1968 an electro-mechanical air hockey alternative where players moved motorbikes knocking balls into opponents' goals using 8-track sound effects. These titles experienced resurgences during the 1980s remaining popular attractions through modern times.
Arcade video games declined globally after 1996 when consoles surpassed them in market share. Western arcades focused on specialized experiences unable replicated domestically including lines of pinball combined with dining or bar options. Dance Dance Revolution required unique equipment while others incorporated motion simulation or virtual reality technologies. The COVID-19 pandemic forced many large Japanese arcades to close permanently reducing numbers from approximately 26,000 locations in 1986 to roughly 4,000 by 2019.
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Common questions
When was the first coin-operated amusement machine released?
The Cricket Match Company released one of the earliest examples of coin-operated amusement machines in 1903. This mechanical game allowed players to hit a pitch into holes to simulate cricket matches.
Who invented the first arcade game with a joystick and fire button?
Sega released Missile in 1969, which may have been the first arcade game to use a joystick with a fire button. These innovations laid the groundwork for future video game controls.
What year did the console market surpass arcade video games globally?
The console market surpassed arcade video games globally around 1997 or 1998. Arcade video games dominated the global industry until about 1996 before declining sharply in the late 1990s.
Why were pinball machines banned in New York City in 1942?
New York City imposed its ban on pinball machines in 1942 because governments classified them as games of chance rather than skill. Fears that pinball was a tool of the devil led many cities to outlaw these devices entirely.
How many arcades existed in Japan in 1986 compared to 2019?
Japan saw its arcade count drop from approximately 26,000 locations in 1986 to roughly 4,000 by 2019. The COVID-19 pandemic in 2020 and 2021 drastically impacted the industry forcing many large long-standing Japanese arcades to close permanently.