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The main reasons Arcades died was because the games you could only play in the Arcades came to consoles. You no longer had to pay £1 a go or £2 a go.

However, i believe there is a market for games that cannot be replicated properly for home gaming such as:

1) proper light gun games
2) The big golf Arcades with the wrap around screen
3) dancing games
4) games with a moving vehicle

However, if it's too be done properly, the pricing structure might need to change. People won't pay £2 a go. They might be better off dropping the price to 50p and having people play more games.

Or maybe even hire out rooms for £50 an hour that might have a special set up for gaming with a bunch of different gamelan accessories.