Crane (claw) machines now drive most revenue for Japanese arcades, occupying prominent space in venues and helping offset a steep decline in arcade numbers since 1989. Key innovations such as Sega's 1985 "UFO Catcher," licensed plush prizes and targeted prize rotations have increased their appeal. Operators tune machine settings for profit while fan culture and family-friendly repositioning have broadened the audience. The result: a resilient arcade sector built around collectible prizes and repeat play.
Hooked on the Claw: How Crane Games Took Over Japan's Arcades
Claw machines have been around since before World War II, but have gone through some radical transformation since (Philip FONG)(Philip FONG/AFP/AFP)
As classes and working hours end across Tokyo, arcade halls fill not with fighting-game showdowns but with players flocking to rows of claw machines, each hoping to hook a prized plush toy. In Ikebukuro and other busy districts, these crane games now dominate prime retail space, often occupying the first two floors while traditional video-game cabinets are relegated upstairs or to basements.
How Claw Machines Became the Backbone of Arcades
"Crane games are keeping the sector afloat," says Morihiro Shigihara, an industry expert and former arcade manager. Operators, machine manufacturers and prize suppliers all depend on the steady revenue these machines generate. Although roughly 80 percent of the approximately 22,000 arcades that existed in 1989 have closed, total revenues have held up thanks largely to claw machines. According to the Japan Amusement Industry Association, the share of arcade revenue from crane games rose from about 20 percent in 1993 to more than 60 percent today.
Players, Prizes and the Psychology of Success
For many players the appeal is simple: the thrill and the sense of accomplishment. "What I like most is the sense of accomplishment," says 20-year-old student Suzuna Nogi, who visits arcades at least twice a week searching for "big plushies." She spends up to 3,000 yen (about $19) chasing prizes at 100 yen per attempt. Professional Pokémon card player Akira Kurasaki also frequents arcades to collect character merchandise, illustrating how fandom drives repeat play.
"The thrill of not knowing whether you'll manage to grab something or not" keeps players coming back.
Design, Licensing and the Rise of the "UFO Catcher"
Crane games date back to before World War II in Japan, originally offering small items like lighters or candy in cafés and bowling alleys. The format accelerated in the late 1980s after Sega introduced the bright, showcase-style "UFO Catcher" in 1985, which made prizes easy to see and more enticing. The decisive innovation, says researcher Benoit Bottos, was filling machines with plush toys. Major manufacturers such as Sega and Bandai began securing licenses for popular anime, manga and international characters (including Disney), turning prizes into collectible merchandise fans want.
Operators, Settings and Local Competition
Arcade operators can adjust claw sensitivity and payout rates "based on the cost of the prizes and revenue targets," Shigihara explains. They may also tweak difficulty to stay competitive with nearby arcades or to target different customer mixes. Operators routinely refresh prize lines and stage events tied to trending characters to attract collectors and casual players alike.
From Gritty Hangouts To Family-Friendly Spaces
Beyond revenue, crane games have helped transform the public image of arcades. Once seen in the 1970s and 1980s as dim, male-dominated venues associated with delinquency, arcades actively pursued a broader, more diverse audience. The colorful, approachable crane game — equal parts vending machine, game of chance and game of skill — epitomizes that shift toward family- and female-friendly entertainment.
In short: Plush toys, smart licensing, accessible machine design and fan culture have combined to make crane games the dominant force in Japan’s arcade industry.
