In a shock downward revision to its earnings outlook, toy and amusement arcade firm Namco Bandai Holdings said it would close between 50 and 60, or roughly one-fifth of its arcades, causing its shares to plummet for a second consecutive session on Thursday.
"A lot of the types of games that people played at an arcade can now be done at home," company spokesman Yuji Machida said.
The Wii, which has gained worldwide popularity, offers an innovative motion-sensing controller that can be swung like a bat or sword. The addition of "Wii Fit", which features a pressure sensing board that players can use to simulate ski jumps or surfing, has also propelled sales.
Many Japanese kids got a Wii last year, particularly over the holiday season, and it seems as if much of their pocket money is now being saved to buy more hardware or software for the console, Machida said.