SEGA Sammy is to close 100 video game arcades in Japan. This follows news that SEGA is to ask some 560 of its employees to metaphorically fall on their swords with voluntary retirements - that's 18% of its workforce - due to a £164 annual million loss.

These closures join the 110 other closed arcades announced last year: this totals a third of SEGA Sammy's games arcade properties. Not only that but rival Namco Bandai has already announced the closure of some 20% of its Japanese arcades.

All of which indicates that the Japanese arcade market is suffering. Indeed, according the SEGA Sammy's own announcement, this indicates "a decline in personal consumption that has become more distinct due to an economic recession and a hard time the Company has had with the sales for the year-end and new-year shopping season in the domestic market."