Still remember when that space was occupied by one of several Timezone video game arcades operating simultaneously in the CBD in the 80s.
As a teen it always felt great to descend into the then dimly-lit subterranean space, anticipating what new games might be on offer. Sigh.
Its transformation into the long-running 'Arfur Daley' status quo was, to say the least, disappointing. I think I've been in the current establishment twice, both times looking for cheap Halloween tat.
Oh yeah definitely! One of my favourite CBD arcades was on Bourke in the mid-80s to maybe early 90s. I think (having just done some searching) it was called Orbit 130, at 130 Bourke, between Russell and Exhibition.
It wasn't that big but their selection was top-notch and often a bit niche. Was the only place I ever saw Marble Madness in the wild and also had a ride-on hydraulic Space Harrier machine, amongst more popular stuff like a sit-down Star Wars cab, Tron, etc. 😎
I think the one you mentioned with the sit-in car racing stuff might have been one of the last #arcades in the CBD - I remember a place on Bourke just next to the now-gone Hungry Jacks on the corner of Russell, which had mostly arcade experiences that weren't easily replicable at home and more social, so the linked car racing ones, dance machines, a taiko drumming machine near the front. Maybe the same place?
Also remember one of the larger arcade franchise places on Bourke in the 80s - on the opposite side to others mentioned. A three-story place, either a Timezone or Flashback, near a McDonalds that also isn't there anymore.
We'd get the train in to see a movie, then use whatever money we had left mainly at the Swanston and Bourke streets' arcades, but also recall another place on Elizabeth, and a really dodgy-seeming underground one on Flinders Street, I think called "Invaders".