The rise of the personal computer and the internet probably contributed to the death of pinball and arcades as well.
Between 1995 and 2000, internet subscribers went from ~10 million to ~300 million. By 2000, over 50% of households in America had home computers.
In a relatively short period of time, people gained access to untold amounts of entertainment that was always changing and updating. The social aspect of getting a high score at an arcade was quickly replaced with new online experiences.