Designing arcade games for mixed-skill multiplayer presents unique challenges that require careful consideration to ensure an enjoyable experience for all players. One major challenge is balancing mechanics to accommodate both beginners and experts. If the game is too easy, skilled players may lose interest; if it's too hard, newcomers might feel discouraged.

Another issue is maintaining engagement. Games must offer dynamic gameplay that keeps all skill levels invested, often through adaptive difficulty or tiered objectives. Fairness is also critical—avoiding scenarios where high-skill players dominate, leaving others with little chance to compete or contribute.

Additionally, designing intuitive controls and clear feedback helps bridge the skill gap, ensuring everyone can participate meaningfully. Finally, fostering a positive community through matchmaking or cooperative modes can mitigate frustration and encourage inclusivity. Addressing these challenges is key to creating successful mixed-skill arcade games.