![]() The arcade market suffered from a lack of diversity even compared to other gaming markets (a 1996 survey showed that 70% of arcade players were teenage males), leading to a cycle in which the uniformity of the audience discouraged innovation in game design, which in turn further discouraged people outside the narrow target audience from visiting arcades. ![]() Furthermore, by the early 2000s, networked gaming via computers and then consoles across the Internet had also appeared, replacing the venue of head-to-head competition and social atmosphere once provided solely by arcades. The gap in release dates and quality between console ports and the arcade games they were ported from dramatically narrowed, thus setting up home consoles as a major competitor with arcades. Decline Arcade video games had declined in popularity so much by the late 1990s, that revenues in the United States dropped to $1.33 billion in 1999, and reached a low of $866 million in 2004. ![]() 's console, the, could produce 3D graphics comparable to the arcade system in 1998, after which Sega produced more powerful arcade systems such as the and in 1999 and the in 2000, before Sega eventually stopped manufacturing expensive proprietary arcade system boards, with their subsequent arcade boards being based on more affordable commercial console or PC components.
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