Advances and changes in the industry seem to be creating more of an effect than some of us knew; two of the biggest arcade companies still out there - Sega Sammy and Namco Bandai - announced they'll be cutting 110 and 50-60 of its Japanese arcades out of their business', respectively, about 25 and 20 percent of the company totals.

Among the factors cited by analysts are improvements and innovations in the handheld experience, the arcade-like gaming offered by some Wii titles, and widescreen HD TV's, which, according to a Namco Bandai spokesperson, allow PlayStation 3 owners to "recreate the arcade experience" at home.

"We need to innovate," said Namco president Jun Higashi at a recent conference. "Especially in the realm of games where people move their bodies. We also need to develop games that can't be played at home."

Square Enix president Yoichi Wada said to Reuters the industry needs a breath of fresh air, and suggested bringing in non-arcade businesses to open franchised stores for new ideas (hopefully it wouldn't turn out like this), and developing titles for different demographics, such as couples and the elderly:

"The industry is at a crossroads. We are going to have to change anyway, so we might as well take the lead."

Squenix in the arcade? Really? Interesting.

What do you say, should we leave arcades to the back corner of the odd mall, or should we put some new juice back in the old machine? Personally, local tournaments would get me back there; little else thrilling with gaming than beating the crap out of some strangers at your favourite local hangout and being commended for it. Great way to meet friends!