No arcades in my city, it seems. I have to echo some of the others and agree that Arcades do seem to be dying out. They're still profitable in more touristic locations, but in most places, I don't think they're worth the hassle for the owners anymore.
Still, at least sometimes new games are made for arcades. I know for a fact Sonic & Sega All-Stars Racing was recently converted into an arcade cabinet, for example. (Not sure if I read about it here or elsewhere though )