You're probably thinking of pachinko parlours, which are absolutely everywhere and look a lot like the arcades haha

There are some big games on arcades in Japan, mostly rhythm games. And Tekken 7 arcades are already out for some months now in Japan.

As I recall, in the uk they were always stupidly over priced. You could quickly lose all your cash in an arcade or go over to a school friends house and play near enough the same game for free for a hell o a lot longer.

When I lived in China I was struck by how cheap they were. Gaming in Internet cafes seem far more common though.

As I recall, in the uk they were always stupidly over priced. You could quickly lose all your cash in an arcade or go over to a school friends house and play near enough the same game (or better games) for free and for a hell of a lot longer on the snes or megadrive.

When I lived in China I was struck by how cheap they were. Gaming in Internet cafes seem far more common though.

Probably multiple reasons.

1.) Home consoles improving their graphical power, thereby eliminating the need to go to an actual arcade for comparable graphics.
B.) Japan's culture seems inherently more social than the Americas. In America, if you want to be social, you get online and chat with your friends. I don't know from experience what Japan is like, but it just seems like their interactions are more about getting out of the house and meeting up for dinner or something. Arcades just seem like they'd be more popular and sustainable there.
4.) Online gaming probably put the final nail in the coffin in America. You can't play COD at the arcades. Most of the types of games that are popular in arcades (score-based like shmups, fighting games, etc.) aren't as popular in America as they are in Japan. FPS dominates the American market and those don't lend themselves well to arcade experiences.

With all that said, there have been retro arcades popping up in places all across America in the past decade. Ground Kontrol in Portland is supposed to be one of the best. We just got one a couple years ago where I live with all the classics: TMNT, X-Men, Turtles in Time, Contra, Galaga/Ms. Pacman, House of the Dead, SFII, Mortal Kombat, etc. Every game I played as a youth, plus Mario Kart 64 on a huge screen, plus alcohol and pizza = good times. The place is packed with people of all ages every time I go. So maybe there's a small resurgence happening?

Play-stay-shon!

no a lot of hot men and women play arcade :(

Not to mention the other aspects of Japanese arcades that give them a wider audience.  Photo booths are still extremely popular with girls and UFO catchers appeal to girls and guys both.  They usually have mahjong and other games of that type that an adult might play.  

Arcades are germ ridden. You can get e coli and die of diarrhea.

No idea why they thrived in Japan (if they did) but I used to LOVE going to the arcade. Couldnt beat playing multiplayer with strangers or experiencing tech that seemed like it was from the future.

Once I was able to get similar experiences at home (with little compromise, no compromise, and inevitably improved hardware), the writing was on the wall.

The idea of (for example) putting on clothes and lining up to play bite sized "PlayStation 5" games for fifty cents a pop just doesn't sound appealing in this day and age.