> The problem is that in 2024, kids can play video games and watch stupid videos in the comfort of their own home

With that thinking, why do restaurants exist when you could just eat from the comfort of your own home (or going to a sports game in-person, etc).

What’s being sold is the experience and/or convenience.

In the case of Chuck E Cheese, it’s a bit of both. Parents get to buy an experience for their kids, and if it’s for a birthday party - they are buying the convenience of not having to host/cook/cleanup a party.