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An all-in-one karaoke machine is just what it sounds like. It can be a device that you purchase which includes all you need for karaoke straight out in the box. It will feature a microphone, and in all probability a bit of music also. The only external component you need is really a television that you would plug it into to see the lyrics as appropriate.
The Japanese are already partial to singing at social gatherings well before the advent of karaoke and were quick to embrace the excitement once it became popular. To them it's more to do with the fun of taking part, as opposed to pressure of giving a command performance. As everyone joins in, ties of friendship are formed and cemented.
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In any case, these places do not need to hire professional singers to deliver the entertainment. ê°•ë‚¨ì…”ì¸ ë£¸ Nor do they pay a cabaret tax, that is usually applicable to your entertainment greater than one individual. Some place like Los Angeles, San Francisco and Toronto have significant Asian communities, which is probably why private karaoke rooms are popular here.