I fell in love with pinball when I was 9, in the summer of '72. There was a machine at the corner drug store. Back then, before Pong, it was a lot easier to play pinball, because it was much more widespread. Where's a kid going to fall in love with pinball these days? Certainly not at the corner store. Arcades, when you can find them, rarely have pinball machines. The most common setting for them these days is in bars, which are off limits to kids.
As a result, fewer kids develop a love of pinball, which translates into fewer adults playing pinball. Fewer kids and adults means a smaller customer base and fewer machines sold.
The pinball manufacturers spent 30 years combating video games. First they moved to cpu control, then increased complexity, added DMD displays, and finally, Williams tried adding a CRT with their Pinball 2000 machines. After producing two different P2k designs, they dropped pinball for video poker. For me, that's a pretty sad ending for my favorite manufacturer.
One thing they were never able to do was make pinball machines appreciably more reliable. I have a 1973 Gottlieb that's more reliable than most newer pins, probably because it has fewer playfield parts. For an operator's perspective, that's a fatal flaw. Pinball machines require constant service. Video games require the occasional retightening of a button or joystick or the resoldering of a switch. Replace the marquee lamp every year or two. By the time the monitor needs re-capping, the game has probably been replaced with a new one. This is what encouraged operators to switch from mechanical games (not just pinball) to video games, as much as the popularity of games such as Pong, Asteroids, and Space Invaders.
I co-own
Ground Kontrol Classic Arcade in Portland, OR, and AFAIK, we operate the most pinball machines west of the Pinball Museum in Vegas. I'm discouraged that I don't see more kids playing pinball. But I do see a lot of people in their early 20s playing. Many of them say pinball is a recently acquired taste. So I'm hopeful that the decline in the number of players has stopped. I don't foresee a resurgence like Gary Stern does, but I'd be glad to be wrong.
I hope Stern can survive, because without them, pinball is doomed.