Arcade machines have evolved significantly in how they handle player customization of in-game avatars or characters. Early arcade games offered limited or no customization due to hardware constraints, but modern systems integrate advanced technology to enhance player personalization.

1. Early Limitations: Classic arcade games like Pac-Man or Space Invaders had fixed characters, as ROM-based hardware couldn’t support customization. Players had no options to alter appearances or traits.

2. Memory Card Systems: In the 1990s, games like "Tekken" or "Street Fighter" introduced memory cards, allowing players to save customized fighters—though options were often limited to pre-set color swaps or costumes.

3. Digital Interfaces: Modern arcade cabinets, such as those running "Mario Kart Arcade GP," use touchscreens or external inputs (e.g., QR codes) to let players design avatars with deeper customization, including outfits, accessories, and stats.

4. Online Integration: Some machines sync with online profiles (e.g., Bandai Namco’s "ID System"), enabling cross-arcade avatar portability and cloud-based updates.

5. Future Trends: Emerging technologies like AR/VR and AI could enable real-time avatar adjustments via motion capture or voice commands, further blurring the line between arcade and console gaming.

While arcade customization still lags behind home consoles, innovations continue to bridge the gap, offering players richer ways to express individuality in arcade experiences.