Designing arcade machines for augmented reality (AR) integration presents several unique challenges. One major hurdle is hardware limitations, as AR requires high-performance processors, advanced sensors, and precise motion tracking—all while maintaining the compact form factor of traditional arcade cabinets. Another challenge is creating intuitive user interfaces that blend physical controls with virtual elements seamlessly. Developers must also address latency issues to ensure real-time responsiveness, which is critical for immersive gameplay. Additionally, designing for diverse environments—accounting for lighting, space, and user movement—adds complexity. Finally, balancing cost-effectiveness with cutting-edge AR technology remains a persistent obstacle for widespread adoption in the arcade industry.