Richie has that extreme diversity, even more so than most every traditional classic arcade out there, and Richie's business isn't even really an arcade. People either seem to be forgetting that Richie Knucklez' Arcade Games is not really an arcade or they just don't know that in the first place. Richie's place is an arcade game restoration, service, and sales business, and the "arcade" is actually a showroom. Some time later they diversified their revenue stream by doing children's birthday parties and corporate parties on the weekends to bring in more steady business, and later still they added "Flashback Fridays" -- $10 at the door to play games on free play for 4 hours -- due to people constantly bugging him about it. This business was never an arcade in the sense that most of us think of an arcade. Over time it became an arcade for a few hours on Friday nights only, and very occasionally on Saturday nights for the local regulars.
Some actual classic arcades around the country are doing pretty well as far as I know. I believe Ground Kontrol in Portland, OR still does decent business and they just recently completed a total remodel. Barcade in Brooklyn, NY reportedly mints money, but that's more from the alcohol sales than from the games. 1984 in Springfield, MO does very well even without alcohol sales (not as much to do in Springfield, and they're down the street from a major college campus). And there are newer classic arcades popping up around the country that are building devoted followings: Dorky's Bar Arcade in Tacoma, WA; Stella's Lounge in Grand Rapids, MI, The 1UP in Denver, CO. Barcade has opened a second location in Jersey City and a third in Philadelphia.
So it's even worse than mlenardon's post above postulates -- not only is it very tough for a classic arcade to survive and thrive in this crappy economy thirty years after the peak of the golden age, it's tough for an arcade game restoration, service, and sales business to survive and thrive even when it does very profitable (but stressful) kids' parties every weekend and charges $10 a head every Friday night to come in and play. Viable video arcades today seem to be fueled by beer and nostalgia, in that order. And location is everything.
All that said, though, Richie has stated that it's not a money issue. Richie has said that he's closing the business more for personal and family reasons more than anything. It sounds to me like the last year of long hours and hard work and constant promotion has taken its toll and he wants and needs a long break. He says he's going to build a kick ass home arcade and spend more time with the family. Give him a year or two. I'm betting we haven't seen the last of a Richie Knucklez arcade game business in some form.