I don't know if this really counts as it's really just a UFO Catcher at it's core, but I have seen this thing at two different restaurants in my home town.
Oh and animal activists shy away.

This is a lobster UFO machine, instead of plush SEGA characters and teddy bears, this thing gives you a lobster. It works exactly how that sounds.
The first time I saw it the restaurant had a deal if you caught it, then they would cook it for you no extra charge (for just the lobster I assume) at a restaurant that was famed in my town for seeing weird and strange things you wouldn't think you would see on the menu for what you thought would be just a seafood restaurant. This was just one oddity among others at the restaurant. I've actually seen a person catch one, so it's not impossible, but I had to go and couldn't stick around to see exactly how it worked.
Eventually that restaurant closed down for not meeting the requirements of the government for sanitation in restaurants (go figure) add to the fact that the lake is was next to flooded the parking lot every so often.
Anyways some time later, I bought the Guinness World Records 2010: Gamers Edition book, and guess what I found:

It was the same machine! It was real! But it was under the
Japanese Arcade section, not just a general arcade section. So I looked it up and pretty much found the same info as the book gave me. That of course explains the Japanese characters in the first photo from google images.
A few years later (and by that I mean earlier this year [Earlier than July in 2012]) I went to another seafood restaurant, and the damn machine was in there (along with other late 90's - modern day machines)! Remember the first restaurant closed down so this one could have bought it from them, so it could be the same machine but idk.
I have to say though, this machine has intrigued me quite a bit and if anyone has any more info on it I would gladly appreciate it. Has anyone else seen this thing in person? Outside of Japan?
EDIT: sorry for the huge second pic