This study is an analysis study on the differences of the development direction for the rhythm arcade game market in Korea and Japan. In Japan, they enlarged rhythm arcade game market through developing a new play style, continually investing, and cooperation with other cultural industries. But Korean rhythm arcade game market have been declining because of regulation strengthening that was occurred by ‘Sea Story’ incident, and lack of technical development & investment. As a result, mitigation of regulation and increase of technical development & investment are needed to recover Korea rhythm arcade game market’s competitiveness.