The Claw Game Craze

How Claw Machines Took Over Hong Kong in the Last Decade

Over the past ten years, Hong Kong has witnessed an unexpected phenomenon: the meteoric rise of claw machine arcades. Once a

niche amusement tucked away in dimly lit corners of shopping malls, claw machinesโ€”also known as “UFO catchers”โ€”have become a cultural staple, dotting bustling retail districts and captivating a diverse crowd of players. From teenagers chasing plush toys to young entrepreneurs seizing low-rent opportunities, the claw game boom reflects a unique intersection of economic shifts, entrepreneurial ingenuity, and social trends. Letโ€™s dive into how this craze took hold, whoโ€™s behind it, where it started, and why itโ€™s gripped Hong Kongโ€™s imagination.

The Rise: A Decade of Claw Machine Mania

The claw machine surge in Hong Kong began to gain noticeable traction around the mid-2010s, but it wasnโ€™t until the last five years that it exploded into a citywide phenomenon. By 2024, claw machine arcades had multiplied rapidly, with property agency Midland reporting 29 claw machine shops in Hong Kongโ€™s priciest retail districtsโ€”Central, Tsim Sha Tsui, Causeway Bay, and Mong Kokโ€”up from just nine in 2021. This growth reflects a dramatic shift in the cityโ€™s retail landscape, driven by economic changes and evolving consumer behavior.

The seeds of this trend were planted earlier, around 2015, when Hong Kongโ€™s retail sector began feeling the pinch of an economic downturn. The city, once a magnet for mainland Chinese tourists who fueled a luxury retail boom, saw a sharp decline in visitor spending due to economic slowdowns and shifting travel patterns. As high-end stores like jewelry chains and drugstores vacated prime retail spaces, shop rents plummetedโ€”some by as much as 90% from their 2015 peak. This created a golden opportunity for low-cost businesses like claw machine arcades to move into spaces once reserved for global brands.

Whatโ€™s Driving the Claw Machine Boom?

The rise of claw machines in Hong Kong is a story of economic necessity meeting cultural appeal. Several key factors have fueled this trend:

  1. Plummeting Retail Rents: The economic downturn, particularly post-2015, left many commercial properties vacant. In Causeway Bay, a shop once leased by jewelry giant Chow Tai Fook for HKD 1 million (USD 128,000) a month in 2011 was rented by a claw machine arcade for just HKD 140,000 (USD 17,920) by 2024. Similarly, a Tsim Sha Tsui arcade called โ€œMoney Clawโ€ operates in a space for HKD 80,000 a month, a 67% drop from what an appliance store paid in 2016. Landlords, facing weak demand, have turned to claw machine operators who can afford short-term leases and require minimal overhead.
  2. Low-Cost Entrepreneurship: Claw machines are an attractive business model for young entrepreneurs. They require relatively low capital investmentโ€”machines cost a few thousand dollars each, and operating costs like electricity and staffing are minimal, especially for unstaffed arcades monitored by cameras. For example, 20-year-old Tara Wan and her boyfriend rented a Causeway Bay shop for just HKD 6,000 (USD 768) a month in 2024, filling it with claw machines to capitalize on the rental downturn. The low barrier to entry has drawn a wave of young Hong Kongers, many in their 20s and 30s, into the business.
  3. Economic Uncertainty and Affordable Entertainment: Hong Kongโ€™s high cost of living and economic challenges have pushed residents to seek affordable leisure options. At HKD 5 (USD 0.64) per play, claw machines offer a cheap thrill, especially for teenagers and young adults. As traditional entertainment venues like karaoke lounges and party rooms have closed or become less accessible, claw machines have filled the gap, providing what some players describe as โ€œHKD 5 happiness.โ€
  4. Cultural Appeal and Addictive Gameplay: Claw machines tap into a universal desire for instant gratification and the thrill of winning. The bright lights, colorful prizes (from plush toys to branded items like Disneyโ€™s Duffy or Chiikawa figurines), and the challenge of maneuvering a claw create an addictive pull. Online tutorials and social media have further fueled the craze, with players like 33-year-old Kage Chan mastering techniques to win hundreds of toys. However, the games are often riggedโ€”claws are programmed to weaken their grip or obstacles block prize exits, keeping players hooked despite low win rates.

The Players Behind the Machines

The claw machine boom has attracted a diverse group of operators, from individual entrepreneurs to larger arcade chains. Young Hong Kongers, often in their 20s, have been at the forefront, drawn by the low startup costs and quick returns. For instance, Tara Wan, a business major, saw claw machines as a way to capitalize on cheap rents without committing to a long-term business. Similarly, Wong Hewitt Hin-yau, 20, has been renting seven machines across Hong Kong for two and a half years, though heโ€™s noted a 10% revenue drop due to market saturation and scams involving knock-off prizes.

Larger chains like Jumpin Gym USA, Namco, Taito Station, and NGS Fun Station have also jumped on the bandwagon, with Jumpin Gym operating 61 arcades as of February 2025. These chains often stock machines with a variety of prizes, from snacks to high-end collectibles, catering to a broad audience. On the supply side, companies like Cool Bear Amusement, based in Guangzhou, have scaled up operations, shipping 500 machines monthly to Hong Kong in 2024, compared to 200 in 2022.

Where It Started and Spread

The claw machine trend first took root in Hong Kongโ€™s busiest retail hubs, particularly Causeway Bay, Mong Kok, and Tsim Sha Tsui, where vacant storefronts were abundant. By 2024, Mong Kok alone had at least 10 arcades along a single stretch, ranging from tiny 100-square-foot setups to multi-floor operations. The Dragon Centre in Sham Shui Po became a claw machine hotspot, with seven of its nine floors filled with machines by 2025, replacing stores like ParknShop.

From these urban epicenters, the trend spread to suburban areas like Sha Tin, Tuen Mun, Yuen Long, and Po Lam, as entrepreneurs sought cheaper rents and new markets. The proliferation was so rapid that by 2024, claw machines were described as ubiquitous, appearing in malls, residential districts, and even corner stores, much like in Taiwan, where claw arcades outnumber convenience stores.

Why So Many People Play

The appeal of claw machines lies in their accessibility and psychological pull. For many, theyโ€™re a low-stakes escape from Hong

Kongโ€™s high-pressure environment. Teenagers, young couples, and families are drawn to the machinesโ€™ bright displays and the promise of winning a tangible prize, whether itโ€™s a plush toy or a collectible figurine. Players like Solo Young, a 29-year-old logistics worker, have spent thousandsโ€”HKD 50,000 in six months in his caseโ€”chasing the thrill of winning or reselling high-value prizes.

However, the gamesโ€™ addictive nature has raised concerns. Complaints to Hong Kongโ€™s Consumer Council spiked to 42 in the first 11 months of 2024, up from 16 in 2023, with players frustrated by rigged machines that use weak claws or blocked exits. Some, like lawmaker Kong Yuk-foon, have called for regulation, noting that tampered machines make winning nearly impossible, turning the game into a form of gambling. Social media platforms like Reddit have echoed this sentiment, with users labeling claw machines as โ€œscamsโ€ that exploit playersโ€™ hopes with programmed win ratios as low as 2-10%.

A Double-Edged Sword

The claw machine boom is a fascinating reflection of Hong Kongโ€™s economic and social landscape. It showcases the resilience of young entrepreneurs like Tara Wan and Wong Hewitt, whoโ€™ve turned adversity into opportunity, and the creativity of a city adapting to change. Yet, it also highlights deeper issues: an economy struggling to recover, a lack of sustainable job creation, and

A Hong Kong 5 coin with a crane game embossed on it._image_1

the ethical concerns of potentially exploitative games preying on vulnerable players.

As Hong Kongโ€™s Consumer Council pushes for stricter regulations and players grow wary of rigged machines, the claw game craze may be nearing a tipping point. Some operators, like Andy Chan of Cool Bear Amusement, remain optimistic about growth, while others, like arcade owner Alan Tang, report declining revenues due to oversaturation. Whether this is a fleeting trend or a lasting fixture, the claw machine phenomenon has undeniably left its mark on Hong Kongโ€™s streets and psyche.

For now, the whir of joysticks and the clatter of falling prizes continue to echo through the cityโ€™s malls, a testament to a decade-long craze thatโ€™s as much about economic survival as it is about chasing a HKD 5 dream.

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  • The Claw Game Craze

    How Claw Machines Took Over Hong Kong in the Last Decade Over the past ten years, Hong Kong has witnessed an unexpected phenomenon: the meteoric rise of claw machine arcades. Once a niche amusement tucked away in dimly lit corners of shopping malls, claw machinesโ€”also known as “UFO catchers”โ€”have become a cultural staple, dotting bustling…