Arcade machines have evolved to support online multiplayer modes, but network latency remains a critical challenge. To ensure smooth gameplay, developers employ several techniques.

1. Lag Compensation: Arcade games often use client-side prediction to mask delays. The game predicts player inputs locally while waiting for server confirmation, reducing perceived lag.

2. Synchronization Algorithms: Techniques like rollback netcode allow games to re-simulate past frames when late inputs arrive, maintaining consistency across players.

3. Frame Delay Adjustment: Some games introduce intentional delays to synchronize actions, balancing responsiveness with fairness.

4. Dedicated Servers: High-end arcade systems may use dedicated servers to minimize latency spikes and ensure stable connections.

5. Optimized Netcode: Efficient data compression and prioritization of critical inputs (like button presses) help reduce bandwidth usage and latency.

By combining these methods, modern arcade machines deliver responsive online multiplayer experiences despite inherent network delays.