#1244 – Embracing Asian Entertainment

AI Constructed Brief

Asian influence continues to reshape the Out-of-Home entertainment landscape, offering lucrative opportunities through Japanese brands, IP collaborations, and innovative retailtainment concepts. Notable developments include Sony’s strategic alliance with BANDAI NAMCO to leverage anime and manga IP, expansion of Japanese-themed venues like Round 1 in the US, and the rollout of self-service capsule and VR attractions by GENDA and DIVR Labs. Japanese IPs such as Resident Evil and Contra are making waves in Western markets, while companies like SEGA diversify via transmedia strategies and new store formats. As Asian culture and IP become central to industry growth, Western operators face critical choices to capitalize or risk obsolescence.

Full Stinger Report

The importance of Asian development in shaping the Out-of-Home entertainment market continues to define the industry but also offers new opportunities through the embracing of Asian culture into the Western mix. This comes while Japanese brands and IP grow in popularity.

Asia’s Growing Impact

Japanese brands needing to look at the wider “Retailtainment” landscape as future business for the sector was best illustrated during the Hyper Japan Expo 2025, held at Olympia, London. Not on many in the trades radar, this event proved a unique opportunity to see the other side of the amusement sector. Booths with selections of Gashapon machines, offering the latest Japanese collectables were on display. A unique presence from GENDA Entertainment Europe, with their ‘GiGO’ self-service capsule systems. The Stinger Report was able to speak to the European representative of the operation and understand the tremendous roll out plans for the division.

And just a stone’s throw away from the GENDA booth and BANDAI NAMCO Amusement Europe (BNAE) was exhibiting, presenting their ‘BANDAI Gashapon’ range of self-service capsule systems. Previously focused on their ‘NAMCO Cross Store’ initiative, their Gashapon range is being fielded to independent operators seeing appearance across the Western sector. It was interesting to see BNAE team working the booth at a non-trade event, dealing directly with the customer base that populated the crowded Japanese themed event.

The Hyper Japan organizers had gathered all things Asian under one roof, with authentic drinks, food, merchandising and clothing. Regarding entertainment, and the only amusement system away from the capsule vendors was from DIVR Labs – who used the show to demonstrate their new Self-Service concept for the VR scene. The ‘InstaVR Arena’ system is an updated VR arena platform supporting up to four players that is completely guest operated, from the selection from five games, and donning of the VR equipment. The company has employed the latest self-service elements, from touchscreen kiosk, automated PICO headset and controller lockers, and player scanned camera technology, all within an illuminated enclosure. The company building on their DIVR Labs VR facility business, that recently included a pop-up temporary store in Japan, and their current Westfield, White City, London operation. This was a Beta production version of the concept brought to the public expo to gauge reaction, we hope to report more on this new release later in the year.

Underpinning the popularity of Japanese culture in the Western market and the drive towards IP control, it was announced that Sony Group Corporation had signed a strategic business alliance agreement with BANDAI NAMCO Holdings Inc. – Sony holding approximately 2.5-percent of the total issued shares of BANDAI NAMCO through an agreement with shareholders to acquire 16-million shares held by them, by Sony. This collaboration aimed at strengthening engagement among anime and manga fans and creating new and emotionally moving experiences, overall maximizing the value of IP.

The BANDAI NAMCO Vice President commenting that the agreement will go to create new entertainment by combining Sony Group‘s strengths and technological capabilities across various entertainment fields with BANDAI NAMCO‘s IP axis strategy. The opportunity that the company represents to Sony is one that has created a transmedia representation internationally, including investment in physical space as well as digital. BANDAI NAMCO’s continued amusement investment was reflected through their BANDAI NAMCO Experience operation, promoting the release of a new amusement game based on ‘One Piece’. The manga and live action series has proven popular – and saw BNE release a punch machine, that seemed a near identical version of the ‘Sonic Blast Man’ punching videogame released by TAITO back in 1990, (a format that also saw an iteration released from GENDA GiGO Entertainment).

We have reported on the popularity of Japanese amusement once again, with the leaked information surrounding the KONAMI amusement investigation into returning to the Western market with dedicated releases. The KONAMI Japan trade webpage included a promotion video for their new ‘CONTRA BURST’ two player mounted shooting game. A product leaked to have been on test at certain US sites previously. No word was given which trade event the game will receive its official Western presentation, though many sources suggest a special appearance at IAAPA Orlando.

Another game revealed to be on test from prominent Japanese amusement developers was the first sighting of ‘Resident Evil 2: Dead Shot’. Revealed to be an Environmental Cabinet game with two pistols – the main reveal was thanks to the hard work of Arcade Heroes and sources on social media. This game was seen in a BANDAI NAMCO Amusement cabinet, with branding from IP owner CAPCOM. Details on release and specifics was still tightly under wraps. Though again an expected appearance at IAAPA in November was hinted at. This would not be the first time that BNA and CAPCOM of partnered on an amusement release, as with the ‘Bio-Hazard: Code: Veronica’ (2001). “Bio-Hazard”, the Japanese name for the “Resident Evil” property. Though CAPCOM had in previous years partnered with SEGA on amusement based on this IP.

For CAPCOM this is the latest appearance in LBE of the Resident Evil IP – releasing in Japan a VR based attraction on the property called ‘Bio-Hazard: Valiant Raid’ (2023) immersive experience developed for the CAPCOM VR-X areas of their ‘Miranio’ facilities. While the IP has also been rolled out into the medal game and pachinko scene in the country. This as well as numerous movie adaptations of the property have cemented its cult following, and for BNA and CAPCOM to partner on a new amusement release, underpins the deployment of prominent IP from Japan into the Western market.

GENDA Entertainment ownership of Player One Group (P1G) starts to manifest itself with the reveal that several amusement sites operated by P1G have started to incorporate GENDA owned Kiddleton amusement pieces. It was revealed that Cinemark arcade spaces have the Kiddleton self-service crane machines included in their lineup. While GENDA owned National Entertainment Network (NEN) chain rolled out their first fully themed Kiddleton arcade. This will see continued investment into this growth. The popularity of these crane machines fuelled by their unique Japanese merch.

Away from the Western investment, GENDA announced their plans to close the iconic Tokyo amusement site at Akihabara. First opened as a popular multi-floor arcade venue in 1992, then operated by SEGA – the site would eventually be handed over to GENDA, with the acquisition of SEGA’s amusement operation division in 2022. Rebranded as ‘GiGO Akihabara’ the site has gone on to continue being an iconic amusement space in the area and mecca for gamers. It was revealed in July that the site will now be closing at the end of August due to the expiration of the facility’s fixed-term building lease agreement. GENDA GiGO Entertainment still operating at least three amusement sites in the area, revealed in the announcement that the building is scheduled to be turned into a new amusement facility to be operated by Matahari Entertainment – more details to follow.

Speaking of SEGA, and they have been aiming to diversify IP portfolio globally, looking at new strategies building on their extensive animation, production, and character licensing businesses, all based on Japanese IP. This comes as SEGA Sammy admitted first Quarter net sales declining by ¥81 billion ($548m), and an operating loss reported as being ¥519 million ($3.5m). The company blamed many factors in their current game publishing plans but confirmed a strategic move towards diversifying their portfolio. As a “Transmedia” operation, this will include the opening of several ‘SEGA Store’ venues. Already Shanghai, Tokyo and Los Angelese facilities have opened selling branded toy and merch based on characters of their range and those of ATLUS.

The corporation is also working on an ultra-secret project towards reinventing their cross-platform game strategy. Under the SEGA Fave division, combining the toy and amusement groups, working on what has been rumored as the SEGA “Fog” gaming strategy.  A “foggy” cloud gaming strategy with shared CPU / GPU that will link local commercial game centers with consumer gaming – even after business hours. Intensive investment is being made in addressing ultra-low latency issues with cloud gaming, but executives are confident this will mark a groundbreaking development, partnered with CRI Middleware.

SEGA has benefited from the success of the Sonic the Hedgehog movie tie-ins, and building on this the corporation revealed another classic video amusement piece to get the movie treatment with the development of a ‘OutRun’ picture in the works. It was revealed that another amusement classic was to get the movie treatment with news that writing had started for a script based on the TAITO arcade classic ‘Space Invaders’, for Weed Road Pictures. Arcade provenance and Japanese cultural influences inspiring this new investment in transmedia.

The popularity of Japanese themed location-based entertainment venues can be encapsulated by the success of Round 1 USA – the chain of over 50 venues of their Mixed-Use Leisure Entertainment (MULE) across the States. Based on the original model derived from the Japanese parent with over 99 sites in their home territory. Recent developments have seen Round 1 USA expand their plans, with an ambitious roll out underway to increase to over 80-sites in the States – with ambitious aspirations for 200 venues in the territory for the end of the decade. Venues offering a selection of amusement, bowling, karaoke, darts, billiards, table tennis, kids play zone and F&B – along with some sites including the ‘Spo-Ca’ “Sportsainment” environment, (see an exclusive report on the “Sportsainment” sector in social entertainment in the coming Entertainment Social Arena report).

The management team at Round 1 siting the growth of their operation capitalizing on the factors that young Americans seeking safe environments, social spaces, along with the rising popularity of Japanese anime, gaming IP, culture and even Japanese gourmet food. The corporation doubling down on the popularity of Japanese culture in the American territory, by launching an ambitious new concept, away from their MULE venue, with the new ‘Round One Delicious’ Japanese gourmet culture restaurants chain, soon to open its first site in Los Angeles.

Regarding all these developments from an Asian perspective, the need for strong IP and branding in the entertainment sector has never been greater. That the location-based entertainment sector is seen as a transmedia strategy will see others throw their hat into the crowded ring. For those established operators in the West, there will be a need to either embrace this opportunity or attempt to define their own path before they are left behind.