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.