The debate between free-to-play (F2P) and pay-per-play (PPP) models in arcades centers on profitability and player engagement. PPP, the traditional model, requires players to pay per game, ensuring immediate revenue but potentially limiting player retention. F2P, on the other hand, offers free access with monetization through in-game purchases, ads, or premium features, fostering longer play sessions and higher engagement.

PPP excels in high-traffic locations where players are willing to pay for quick, high-quality experiences. However, F2P can generate sustained revenue by attracting a broader audience and encouraging microtransactions. Studies show F2P models often yield higher lifetime value per player, though they require careful balancing to avoid alienating users with aggressive monetization.

Ultimately, the choice depends on the arcade's target market and location. Hybrid models, combining elements of both, are emerging as a viable compromise, blending instant revenue with long-term player loyalty.