With parents passing on the tradition to the children, the Y generation begins to join the ranks of those who enjoyed the arcade games and parlours of the past, bringing back a lot of old traditions which were beginning to get lost.

Barcade's popularity among Williamsburg's 20- and 30-somethings reflects a wider trend in the video game industry -- "retro" games are back as parents introduce their offspring to the beloved games of their youth.

Few segments of the $30 billion global video game market needed it more than the U.S. arcade business, which has shrunk to about a quarter of its peak size.

In the heyday of the mid-1980s there were more than 10,000 arcades in the United States and about 1.4 million games placed in myriad locations from teen-mobbed mall arcades to convenience stores, said Michael Rudowicz, president of the American Amusement Machine Association.

The number of arcades shriveled to about 2,500 during the industry's nadir roughly four years ago on the heels of skyrocketing shopping mall rents and competition from console gaming.

The count of U.S. arcades now stands at about 3,500 as "Pac-Man," "Asteroids," "Tron," "Centipede" and other stars of the golden age of arcade gaming ride a comeback wave unseen since the start of Sony's PlayStation home console era.

Mishtram via today.reuters.com »