Across East Asia, internet cafes are no longer just places to get online. They have become cheap accommodation, workspaces and informal safety nets for people caught between jobs, homes and futures.

The internet cafe was supposed to become obsolete. Instead, it has become indispensable. Across East Asia, these businesses are quietly evolving into temporary homes, budget hotels, co-working spaces and, for some, an unofficial social safety net. The debate in Hong Kong over overnight Internet cafes is simply the newest chapter in a much bigger regional story.

Hong Kong authorities have stepped up inspections after some internet cafes began offering overnight packages, private booths, showers and even laundry facilities, raising concerns over fire safety and whether they are effectively operating as unlicensed guest houses. On the surface, it is a story about regulation. In reality, it also reflects how the role of the internet cafe has changed.

For years, internet cafes appeared destined for extinction. Instead, the industry reinvented itself. Some cafes moved upmarket, becoming esports lounges equipped with powerful gaming PCs few could afford at home. Others took a very different path.

Across mainland China, some now offer reclining chairs, private booths, showers, washing machines and inexpensive meals. In Hong Kong, mainland chains are opening branches that........

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