In recent years, a new kind of entertainment venue has been capturing the hearts (and dollars) of Australian urbanites: the arcade bar. Combining the nostalgic appeal of classic arcade gaming with craft beverages and sophisticated food options, these establishments offer a uniquely appealing blend of retro entertainment and modern hospitality.

The concept, which originated in the United States with pioneering venues like Barcade in Brooklyn, has found fertile ground in Australia's major cities. Today, arcade bars represent one of the fastest-growing segments of Australia's hospitality industry, with new venues opening regularly across the country.

Let's explore this booming trend and highlight five standout arcade bars that are leading the charge in different Australian cities.

Why Arcade Bars Are Booming

The popularity of arcade bars can be attributed to several converging factors:

• Nostalgia appeal: For millennials and Gen X patrons, arcade bars offer a chance to revisit the games of their youth in a grown-up setting.
• Discovery for younger generations: For Gen Z customers who missed the golden age of arcades, these venues provide an opportunity to discover classic games in a social environment.
• Social gaming: Unlike home console or mobile gaming, arcade bars emphasize face-to-face interaction and friendly competition.
• Experiential hospitality: Modern consumers increasingly seek out unique experiences rather than just food and drink.
• Instagram-friendly aesthetics: The vibrant, neon-lit environments of arcade bars make for highly shareable social media content.

Industry data supports this trend: according to a recent hospitality sector report, venues offering interactive entertainment alongside food and beverage service saw an average 22% higher revenue per square meter compared to traditional bars and pubs.

Top 5 Arcade Bars in Australia

1. Netherworld (Brisbane)

Located in Brisbane's vibrant Fortitude Valley, Netherworld has established itself as the gold standard for Australian arcade bars since opening in 2017. With over 40 arcade cabinets, 15 pinball machines, and a library of console games, it offers one of the country's most extensive gaming collections.

What sets Netherworld apart is its commitment to both gaming and culinary excellence. The venue's "Hellmouth Diner" serves an impressive array of plant-based and omnivore options with influences from American and Asian cuisines. The bar program features 24 rotating taps of craft beer, alongside creative cocktails often named after game characters or references.

Must-play games: Their rare Tron cabinet, the meticulously maintained Star Wars pinball machine, and the four-player Pac-Man Battle Royale.

Signature drink: The "Power-Up Punch" – a color-changing cocktail served in a light bulb vessel that glows under the arcade lights.

2. Pixel Palace (Melbourne)

Nestled in Melbourne's CBD, Pixel Palace takes a more curated approach with a smaller but impeccably maintained collection of 25 arcade cabinets. The venue distinguishes itself through its rotating game selection – every month, they swap out 5-10 machines to keep the experience fresh for regular visitors.

The space embraces Melbourne's renowned design aesthetic with industrial elements softened by neon art installations commissioned from local artists. Unlike many arcade bars that opt for token systems, Pixel Palace uses a wristband model – pay a flat entry fee and enjoy unlimited free play all night.

Their beverage program showcases Victoria's best microbreweries, with a particular focus on limited-release and seasonal beers you won't find elsewhere.

Must-play games: Their custom multicade cabinet featuring ultra-rare Japanese imports, the addictive Killer Queen ten-player strategy game, and their pristine original Donkey Kong cabinet.

Signature drink: The "8-Bit IPA" – a collaboration with a local brewery that changes its hop profile each quarter.

3. Motherboard Arcade (Sydney)

Sydney's Motherboard Arcade in Surry Hills takes a high-end approach to the arcade bar concept. Spanning two levels, the ground floor features 35 classic arcade machines and a traditional bar, while the upper level houses private "game lounges" that can be booked for groups.

What truly distinguishes Motherboard is its cocktail program, which rivals Sydney's best bars. The venue employs award-winning mixologists who create game-inspired concoctions using molecular gastronomy techniques and house-made ingredients.

The food menu, developed by a chef previously employed at a hatted restaurant, elevates arcade bar fare with sophisticated takes on nostalgic snacks – think wagyu beef sliders, truffle-infused mac and cheese bites, and gourmet loaded fries.

Must-play games: Their rare Japanese rhythm games, the six-player X-Men cabinet, and the custom-built virtual reality station featuring rotating experiences.

Signature drink: The "Game Over" – a dramatic smoking cocktail served with a flaming presentation that requires signing a waiver.

4. Button Mash (Perth)

Perth's entry in the arcade bar scene takes a family-friendly approach during daytime hours before transitioning to an adults-only venue in the evenings. Located in Northbridge, Button Mash features an impressive 50 arcade cabinets with a particular focus on racing and sports games.

The venue stands out for its tournament schedule, hosting competitive events five nights a week ranging from casual Street Fighter nights to serious competitive leagues with seasonal championships. Their "Hall of Fame" wall displays the photos and high scores of local gaming legends.

The food concept centers around elevated American diner classics, with an entire menu section dedicated to different variations of loaded tater tots that have developed a cult following locally.

Must-play games: Their eight linked Daytona USA cabinets for full-group racing, the rare Prop Cycle with actual bicycle controls, and their custom-built four-player Pac-Man table cabinet.

Signature drink: The "High Score" – a boilermaker pairing featuring rotating craft beer and whiskey combinations.

5. Level Up (Adelaide)

Adelaide's premier arcade bar takes a nostalgic approach with a comprehensive '80s and '90s theme that extends beyond just the games. Located in a renovated warehouse in the West End, Level Up features 45 arcade cabinets, 12 pinball machines, and a dedicated console lounge with original hardware from the Atari 2600 through to the Nintendo 64.

What makes Level Up special is its theming – staff uniforms inspired by iconic '80s films, a ceiling completely covered in cassette tapes, bathroom walls papered with vintage gaming magazine pages, and a soundtrack exclusively featuring synthwave and retrowave music.

Their food program embraces nostalgia with gourmet takes on classic snacks like Pizza Rolls, Dunkaroos, and homemade versions of discontinued fast-food items from the era. The bar specializes in recreations of discontinued soft drinks and "adult" versions of childhood favorites.

Must-play games: Their collection of ultra-rare LaserDisc games including Dragon's Lair and Space Ace, their immaculate Star Trek: The Next Generation pinball machine, and their custom cabinet featuring every Neo Geo game ever released.

Signature drink: The "Konami Code" – a layered cocktail that changes color as you drink it, served with a candy space invader garnish.

The Business Model Behind Arcade Bars

The financial structure of arcade bars differs significantly from traditional venues, with several revenue streams contributing to their business model:

• Game revenue: Either through tokens/coins or entry fees with unlimited play
• Food and beverage sales: Typically with higher margins than standalone arcades
• Merchandise: Many venues sell branded shirts, glasses, and game-related items
• Events: Tournament entry fees, corporate bookings, and private functions
• Memberships: Some offer subscription models with perks for regular visitors

The initial investment in arcade bars tends to be substantial, primarily due to the cost of acquiring and maintaining vintage arcade machines. A single classic cabinet in good condition can cost anywhere from $2,000 to $15,000, with rare or collectible games commanding even higher prices.

Maintenance represents another significant ongoing expense. Most successful arcade bars employ at least one full-time technician to keep machines operational, as these decades-old electronics require regular attention.

Despite these costs, the profit margins can be attractive. While a traditional bar might expect 25-30% profit margins, successful arcade bars often achieve 35-40% margins due to the additional revenue streams and increased customer dwell time.

The Future of Arcade Bars in Australia

As the arcade bar concept matures in Australia, several trends are emerging that point to the future direction of the industry:

• Specialization: New venues are increasingly focusing on specific gaming niches, such as fighting games, racing simulators, or pinball.
• Integration with esports: Some arcade bars are adding streaming capabilities and hosting competitive events that bridge the gap between traditional arcade gaming and modern esports.
• Custom game development: Leading venues are commissioning indie developers to create exclusive games only available at their location.
• Regional expansion: The concept is beginning to spread beyond major cities into regional centers, often with locally themed games and beverages.
• Family-focused daytime operations: Many venues are adopting split personalities – family-friendly during the day, adults-only at night – to maximize usage of their expensive gaming equipment.

Industry analysts predict the arcade bar sector will continue to grow by approximately 15-20% annually over the next three years, with particularly strong growth in mid-sized cities that are just beginning to see their first venues.

Tips for Your Arcade Bar Visit

If you're planning to visit one of Australia's arcade bars for the first time, here are some helpful tips to enhance your experience:

• Check the payment model: Some venues use tokens or coins, others charge an entry fee for unlimited play, and some combine both approaches.
• Look for weekday specials: Many arcade bars offer discounted game play or food and drink specials on traditionally slower nights.
• Arrive early: Popular venues often reach capacity on weekend nights, with wait times of an hour or more not uncommon.
• Join tournaments: Even if you're not highly skilled, tournaments are a great way to meet other gamers and often include drink specials for participants.
• Ask staff for recommendations: Most arcade bar employees are passionate gamers themselves and can point you toward hidden gems or games that match your interests.
• Practice proper arcade etiquette: Don't place drinks on machines, respect players in the middle of games, and never bang or slam the controls.

Whether you're a dedicated gamer looking to experience rare cabinets, a casual player seeking a unique night out, or simply curious about this growing trend, Australia's arcade bars offer something for everyone. The combination of nostalgic gaming, quality food and drink, and social atmosphere creates an experience that transcends both traditional arcades and conventional bars.

As this sector continues to evolve, we can expect to see even more innovative approaches to combining gaming culture with hospitality. The arcade bar phenomenon represents more than just a trend – it's a reimagining of how gaming can be integrated into social spaces, creating communities around shared experiences that span generations.

Game on, Australia – and don't forget to drink responsibly while chasing that high score.