Japan's 'Gacha' Craze Lands in Santa Monica with New Pop-Up Arcade

Santa Monica, CA – A slice of Japanese arcade culture is coming to the heart of Santa Monica with the launch of 'Gacha & Catch,' a new pop-up experience offering the unique thrill of 'gacha' capsule toys and UFO catchers. Backed by major players in the entertainment industry – Mitsubishi Corporation, TOMY Company, and SEGA SAMMY Holdings – the arcade aims to bring an authentic and immersive experience to Southern California, capitalizing on the growing popularity of Japanese pop culture.

'Gacha' – a term derived from the sound of a toy capsule vending machine – and UFO catchers (claw machines) are a mainstay of Japanese arcades and entertainment centers. Unlike typical American claw machines, Japanese versions often feature highly sought-after prizes, meticulously curated themes, and a higher degree of skill involved. The 'Gacha & Catch' pop-up intends to replicate this experience, offering a wide range of exclusive merchandise from popular franchises like Sonic the Hedgehog, Demon Slayer, and the rising star, Dan Da Dan.

Riding the Wave of Japanese Pop Culture

The timing of the launch aligns with a significant surge in the popularity of Japanese entertainment and culture in the United States. Manga sales have quadrupled since 2019, becoming the fourth-largest fiction category overall. Anime conventions attract tens of thousands of attendees, and Japanese brands continue to thrive in the American market. This growing demand has created a receptive audience for authentic cultural experiences like 'Gacha & Catch.'

“The appeal of ‘gacha’ isn’t just about the prize itself; it’s the anticipation, the excitement, and the collectibility,” explains a source familiar with the Japanese arcade scene. “It’s a fun and engaging form of entertainment that appeals to a wide range of ages.”

Industry Giants Align for Expansion
The venture is a strategic move for the companies involved. Mitsubishi Corporation, as the parent company of Japan Entertainment One, is diversifying its portfolio and exploring new business models. TOMY, a leading toy manufacturer, is leveraging its strong intellectual property and expanding its global reach. And SEGA, while facing challenges in its traditional pachinko business, is focusing on growing its entertainment content division, driven by the success of the Sonic the Hedgehog movie franchise and licensing revenue.

“The companies see a significant opportunity in bringing this unique entertainment format to the American market,” states a financial analyst following the companies. “It’s a way to capitalize on their existing IP and tap into the growing demand for Japanese pop culture.”

Financial reports indicate a mixed performance for the companies in recent years. While TOMY experienced strong growth in its first half of the fiscal year ending March 2025, SEGA saw a decline in overall revenue. However, both companies are actively investing in entertainment content and merchandise, suggesting a long-term commitment to this sector.

A Competitive Landscape

'Gacha & Catch' enters a market with existing entertainment venues, particularly in the Santa Monica area. The historic Playland Arcade on the Santa Monica Pier offers a classic arcade experience, while other locations in Los Angeles provide a mix of traditional and modern games. However, 'Gacha & Catch' differentiates itself with its specialized focus on Japanese ‘gacha’ and UFO catchers, and exclusive merchandise.

“The pop-up’s curated selection of prizes and authentic arcade atmosphere should appeal to a different segment of the market,” observes a local entertainment expert. “It’s not just about playing games; it’s about experiencing a different culture.”

Exclusive Merchandise and Collectibility
The promise of “exclusive prizes” is a key draw for attendees. While Sonic the Hedgehog and Demon Slayer have extensive merchandising histories, the pop-up will offer unique items sourced specifically for the event. Dan Da Dan, a newer franchise, will also be featured, offering fans a chance to collect rare merchandise.

“The exclusivity is a big part of the appeal,” explains a collector familiar with Japanese ‘gacha’ culture. “These prizes aren’t just available anywhere. They’re often limited edition and highly sought after.”

The nature of ‘gacha’ and UFO catcher prizes often involves items produced specifically for particular machines or events, making them a unique addition to any collection. The pop-up aims to capitalize on this collectibility, offering attendees a chance to obtain rare and exclusive merchandise.

Looking Ahead
The launch of 'Gacha & Catch' represents a strategic move for the companies involved and a promising addition to the Southern California entertainment landscape. By capitalizing on the growing popularity of Japanese pop culture and offering a unique and immersive experience, the pop-up is poised to attract a wide range of attendees.

“The key to success will be maintaining a consistent supply of exclusive and highly desirable prizes,” suggests an industry insider. “If they can keep the excitement going, ‘Gacha & Catch’ has the potential to become a popular destination for arcade enthusiasts and fans of Japanese culture.”

The pop-up's location on the 3rd Street Promenade places it in a high-traffic area, maximizing its visibility and reach. As the demand for authentic cultural experiences continues to grow, ‘Gacha & Catch’ is well-positioned to capitalize on this trend and become a lasting addition to the Santa Monica entertainment scene.