It's not my favourite model, but a lot of Arcade games became console games in SEGA's heyday in some capacity anyway... So I'm not too concerned about it being the other way around. Of course Arcade games built for the Arcade first are always the top choice.
Arcades are always going to be different experience from console gaming. Arcades are a public thing. Something you play in a public setting with a group of people. Arcades are more of a casual gaming experience, the difference between it and console gaming is, there's a larger fun factor and socialization.
There's always been this myth that Arcade gaming is inferior to console gaming. Arcades are generally technically superior to consoles and have bigger features and better gimmicks. Only in the 5th Gen, did console tech finally begin to catch up to Arcades. But I can say, console tech is now back to being completely inferior to Arcades.(PS4's Jaguar CPU is on par with RINGEDGE 1 which is a 2009 Arcade board). Regarding, VR Arcade Tech, SEGA did file a JTO "3DLEDVISION" in Japan last year.
I believe Arcades are going make a GRAND comeback. What happened in the mid 90s was that the adjustment of inflation on gameplay costs to make up for operating losses made it impossible for people to want to pay $1 per play. The token and coin method had quickly gotten obsolete, so it became extremely difficult to convince vendors and consumers outside of Asia that the new 3D consoles were still behind Arcade boards. This was the cause of the Global Arcade collapse in the mid 1990s. Now in days, ALL Arcade games use a re-loadable card payment method.
Today, the console market is prejudiced, the Casuals who went nuts for Wii have moved on to mobile games, alot of older veteran gamers have become burned out by library offerings on the current gen consoles(nothing original), and because of Steam's convenience and the expenses of PC gaming have decreased dramatically they've moved mostly on to PC, the actual industry is split. Hardcore gamers are now much younger,less informed, have little knowledge about actual gaming history or how gaming companies are supposed to operate and run business.
The factor that made SEGA's Arcade ports and home consoles so fantastic, was that because SEGA doubled as a Arcade company, they could easily bring the Arcade experience into the home and knew how to bring the local multiplayer experience home too. It makes perfect sense for SEGA to invest in reviving its Core Business and using its strong points to rebuild their brand. SEGA need to tell younger gamers what type of BRAND they REALLY are. Not just this little publisher.
As far as I'm concerned, Arcades are winnable through Casuals. It's extremely EASY to win them over to the Arcades. Dave & Busters and Chuck E. Cheese here in the States are still successful though they don't have much newer lineup of Amusement games, again Arcades are at heart Casual. As long as NEWER games keep coming, and there are more vendors to buy them, the Casuals will keep coming to the Arcades.