Designing arcade machines for augmented reality (AR) experiences presents unique challenges that blend hardware, software, and user interaction. One major hurdle is ensuring seamless integration of AR technology with traditional arcade mechanics, which requires robust hardware capable of real-time rendering and motion tracking. Another challenge is creating intuitive controls that bridge physical and virtual interactions, as players must engage with both the machine and the AR environment simultaneously.

Additionally, spatial constraints in arcade settings limit the scope of AR experiences, demanding creative solutions for confined spaces. Latency and synchronization issues can also disrupt immersion, making smooth performance a critical focus. Lastly, maintaining affordability while incorporating advanced AR features remains a balancing act for developers. Overcoming these challenges is essential to delivering captivating and accessible AR arcade gaming.