I think the arcade of our childhood has given way to the console market, in much the way movie theaters are losing ground to home theater setups.

In order to get me out of the house, you have to provide more entertainment than I can get at home.

I've all but stopped going out to the movies. For what it would cost me to take my gf to the movies, I can BUY a movie on DVD and watch it whenever I want. I can buy 2 movies if you factor in popcorn and soda. And, quite frankly, I have a better environment for viewing at home. My TV produces a better (albeit smaller) image than the theater, the surround sound is tuned to my seat, and there are never any kids giggling in the back row. Plus i can pause to go pee. The cineplex is unable to compete, so I don't go there.

Similarly, an arcade would need to have more appeal than simply "playing somewhere else." If you think about a place like Dave and Busters, you really have that. You can play 8-person linked racing games, dancing games, boxing, shooting, all sorts of stuff I simply can't do in my living room (until the Wii comes out).

The notable exception is boardwalk-style arcades. Something about a weekend at the beach is very nostalgic and draws you to stand-ups, pinball, and simple drivers... It also makes you want to play those silly carnival games where you NEVER win anything and always feel inferior because some OTHER guy is walking around with the giant stuffed giraffe he won his girlfriend.