Though the arcade scene in America has been dead for quite some time, Japan has still been a home to many popular arcades. At least, it has up until now. Arcade firm Namco Bandai has announced plans to close between 50 and 60 of its arcade locations across the country, citing the expanding home console market as a big part of the problem.

Specifically, company spokesman Yuji Machida blames the Nintendo Wii, stating that strong holiday sales for the console mean a lot of kids have spent their time at home playing, and spent their money on more Wii software and hardware, such as the popular Wii Fit package.

Of course, home consoles certainly aren't the only cause. Machida also cites rising gas prices as a concern, as families become less willing to travel back and forth from shopping malls, where arcades are normally located. The 50-60 arcades closing account for one-fifth of Namco Bandai's arcades in Japan. A big loss, to be sure.

source: http://www.joystiq.com/2008/02/07/namco-bandai-blames-wii-for-arcade-closures/ 

it's like people blame Halo3 for not going to the theater and watch their crappy movies.

...shouldn't he be blaming the DS instead? Like everyone in Japan has one.

In my country Arcade are still pretty popular, we have one arcade center in every big mall, I really enjoyed the Street Fighter games era, sadly the only arcade machines you see very crowded right now are the Dancing ones.., I am too old for that

I would say its a combination of DS and Wii that's killing the arcades. IMO, who cares. Buy a Wii and be happy.

I have not been to an arcade in a long time.

They blame Wii Fit.

Well Arcades have been dead in the US for 14 years since Street Fighter II and all other popular Arcade games started being ported to SNES.

I blame people who have no lives and never leave the house.

You just don't get the same fun playing games at home than on an arcade machine

It was nice beating strangers on the arcades... Those were nice days