Arcade game developers meticulously craft risk-reward systems to ensure skill-based games remain engaging and fair. By analyzing player behavior, they adjust difficulty curves, reward structures, and penalty mechanics. For example, higher risks (like challenging levels or limited resources) often yield greater rewards (points, power-ups, or progression), motivating players to improve their skills. Playtesting and iterative design help fine-tune these systems, ensuring neither frustration nor boredom dominates the experience. Ultimately, a well-balanced risk-reward system keeps players hooked while rewarding mastery.