Arcade games have evolved significantly with the integration of augmented reality (AR), offering players immersive location-based experiences. By overlaying digital elements onto the real world through smartphones or AR headsets, these games transform physical spaces into interactive playgrounds.

One key method is geolocation, where AR arcade games use GPS to anchor virtual objects or challenges to specific real-world locations. Players must physically move to these spots to unlock rewards or progress in the game. This approach encourages exploration and social interaction, as players often collaborate or compete in shared environments.

Another technique involves marker-based AR, where arcade games scan real-world objects or QR codes to trigger digital content. This creates a seamless blend of physical and virtual gameplay, enhancing engagement.

Popular examples include games like "Pokémon GO," which pioneered location-based AR gaming, and newer arcade-style AR experiences that combine classic gameplay mechanics with modern technology. These innovations not only attract players but also drive foot traffic to businesses hosting AR-enabled arcade games.

As AR technology advances, arcade games will continue to push boundaries, offering even more dynamic and interactive location-based experiences.