Round1's Linguistic Commodification
Round1, a Japanese entertainment arcade chain, is rapidly expanding into the United States. The company has 100 stores in Japan and 50 open or planned locations in the United States. Round1 resembles Dave & Buster's and other competitors, but it has one key differentiator: its Japanese roots, right down to the language on the screen.
When you walk into a Round1 location, you'll initially see familiar games: claw machines, immersive racing games, and ticket redemption games featuring popular characters. But you won’t get far before encountering a category of games rarely found in other large chains: Japanese imported arcade cabinets, many of which offer authentic, untranslated experiences once inaccessible outside of Japan.
A Brutal Landscape
For decades in the late 1900s, arcades were go-to spots for entertainment. However, the arcade industry has been on a slow decline after the release of home consoles and computer gaming. Consumers found it more economical to buy a console than to feed quarters into arcade machines.
The rise of home gaming has disrupted the industry, leaving many companies scrambling to find new differentiators. Rising operational costs have thinned margins, forcing businesses to diversify beyond traditional cabinets to win back customers. For instance, Dave & Buster's has been pushing its "Store of the Future" model shifts toward sports viewing and digital party games in an attempt to counteract disappointing financials.
While many chains have struggled to adapt the challenging post-console landscape, Round1 has generally found success, achieving 1 million yearly visitors per store. In its November 2024 financials, the company noted that while its US locations have been trending negatively due to poor economic conditions, recent performance seems to be recovering with 6% year-over-year growth in October 2024. By offering both American-made and Japanese-imported games, the company has created a niche market that contributes to its growing success.
In conditions unfavorable to arcades bolstered by tightened consumer spending, Round1's silver bullet is its capitalization off the growing fascination with Japan.
Round1's Niche
Fueled by record-high tourism and growing influence, there is significant demand for Japanese culture in the United States. Companies offering Japanese media have capitalized on this growth: Crunchyroll, an anime streaming platform, grew from 1 million subscribers in 2017 to over 15 million by 2024, and Japanese has become one of the most studied languages on Duolingo, particularly among users under 30.
Online, many young Americans, inspired by anime and other exports, learn Japanese as an L2. A key strategy among learners is immersion, which involves consuming Japanese content for hours a day to improve comprehension. The approach has become widely known and videos explaining this intensive method have garnered millions of views. It's an intense routine, often involving hours of daily media consumption. Japanese media has reshaped Gen-Z and Millennial perceptions of Japan, creating a passionate fanbase willing to learn the language.
This wave of positive Japanese sentiment has become a phenomenon so widespread that internet users have started satirizing the situation. There has been a growth of popular memes parodying the tendency to glaze, or excessively praise, anything Japanese. One of the most well-known versions is the following:
These memes show how Japanese culture has entered the mainstream, a trend that directly benefits Round1's commitment to authentic Japanese offerings.
Nevertheless, critics remain a minority and the country continues to grow in popularity among younger generations, creating a massive market for Japanese imports. US Round1 locations capitalize on this Japanese cultural demand by offering consumers a way to experience the culture without a 12-hour flight, leading to its growing popularity.
A Linguistic Driver
Round1’s untranslated cabinets cater directly to this demographic, turning the language barrier into a selling point. Classic ticket redemption games–from ticket wheels to ball drop games–are present but remain out of the spotlight. Round1 leans more towards its Japanese imports, including popular rhythm games like Project Diva and the Sega UFO Catcher, a crane game with unique mechanics.
This focus also seems to be a significant revenue driver. When asked about the growth of different games, Round1's CEO confirmed that its Japanese crane games had the highest growth rate by far and that replacing some American redemption games with these cranes "directly [leads] to increased sales."
Many of these imported games are available only in Japanese, including their instructions, song lyrics, and inputs. While this may appear to be a localization oversight in adapting to the US consumer, the inclusion of these untranslated games is an intentional move.
When first encountering these games, most American users will initially fumble to figure out how to use the machine; new users must navigate an entirely unfamiliar language, a process that often involves trial and error. However, this experience is likely a selling point.
Just as American tourists in Japan or any other foreign country must constantly rely on Google Translate to get by, American users of these machines must conquer the language barrier to play successfully. Although this may alienate some (who can turn to the standard English arcade games), these imported arcade games offer a deeply authentic experience previously unavailable outside of the country. For many fans of Japanese exports, the language is an exciting thread connecting their interests, and these games offer another way to explore the culture.
Round1 engages in linguistic commodification, leveraging Japan's soft power among younger consumers. The Japanese language has gained status among Americans through the favorable perception of its media exports, making the Japanese interfaces in these games a selling point.
Beyond the linguistic differences, many of these games have technically demanding gameplay that requires precise movements to succeed. The technical mastery these games demand fosters skill progression, creating a feedback loop that retains dedicated players and cultivates community.
Looking Beyond
Increasing globalization has enabled unprecedented levels of linguistic interaction. While many businesses achieve international success by fully adopting local languages and customs, Round1 takes the opposite approach. The company embraces its Japanese identity, capitalizing on growing cultural openness enabled by global connectivity.
Round1’s growth isn’t driven by price or convenience but by a loyal fanbase drawn to its cultural authenticity. By offering Japanese machines, the company invites consumers to immerse themselves in a new language and culture. In the long run, that might be its most powerful move of all.
