The place is called Maneki Neko, which means "good-luck smiling and waving cat"
A karaoke bar is not so much a bar as it is a huge warehouse with a bunch of private rooms. You go with a group of friends and get your own little 10'x15' room with two microphones, a plasma screen, and an amazing sound-system with a badass echo built into the vocals. There are a couple of bonuses to the private rooms: you don't have to sing in front of strangers and you don't have to wait a long time before it's your turn again.
You compete against a robot and you know that you're winning if your word bubble is smiling and his is crying.
Like most drinking establishments in Japan, you order your drinks not from a waiter, but from a little remote control. Just punch in the right code and a minute later someone shows up with a beer, a tiny bottle of sake, or even a bowl of ramen.
The biggest difference, though, is that in Japan karaoke is serious business. The get-as-drunk-as-you-can-and-make-a-total-ass-of-yourself-in-public vibe doesn't really exist here. You won't find two guys singing "I Got You Babe" bromantically to each other. You sing karaoke because you like to sing and singing is fun, not because you want everyone to laugh at how bad you are.
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That said, it's still good fun. No one really cares how well you sing, just that you sing your best and have fun doing it.