Designing arcade machines for augmented reality (AR) overlays presents unique challenges that blend hardware, software, and user experience. One major hurdle is hardware compatibility—ensuring the machine supports AR tracking and rendering without lag. Another issue is spatial mapping, as AR overlays must align perfectly with the physical environment to avoid disorientation. User interaction also becomes complex, as traditional joysticks and buttons may not suffice for immersive AR gameplay. Additionally, maintaining durability while incorporating advanced sensors and cameras is costly. Finally, developers must balance novelty with intuitive design to keep players engaged without overwhelming them. These challenges highlight the evolving nature of AR in arcade gaming.