This is sad, if it is indeed true. I still can't see how Capcom would be pulling out of the arcade industry. Shit, Capcom, Sega, and Namco practically are the arcade industry right now.
Yeah, small arcades are a dying breed. But big places like GameWorks are still quite popular. On a Friday or Saturday night the GameWorks by my house turns into a nightclub (a very cheesy, weak club but it's better than nothing). They serve food, booze, have radio contests, hire disc jockeys, and play house music. On the second floor they have a full service bar and pool tables. On the main floor they have a small restaurant, it serves beer too, along with all the "big" games. Some of the women up there are pretty hot too.
I'm usually the loser on the second floor playing all the old school games. Most people aren't there to play the video games. They just like to socialize and shit. But hey, if it's keeping the arcade alive, I'm all for it.