Arcade game machines have long captivated players with their fast-paced action and engaging challenges. A key element behind their immersive experience is the dynamic behavior of in-game AI squads, which adapts to player actions in real time.

1. Finite State Machines (FSMs): Many arcade games use FSMs to define AI behavior. Each squad member transitions between states (e.g., patrol, attack, retreat) based on predefined rules and player interactions.

2. Scripted Sequences: Pre-programmed behaviors ensure squads perform coordinated actions, such as flanking or covering fire, enhancing realism without overloading processing power.

3. Adaptive Difficulty: AI squads adjust aggression and tactics based on player performance, maintaining a balanced challenge. This is often managed through dynamic difficulty algorithms.

4. Pathfinding Algorithms: Techniques like A* or Dijkstra’s algorithm help AI navigate complex environments while avoiding obstacles, ensuring smooth squad movement.

5. Real-Time Decision Making: Modern arcade games leverage lightweight machine learning or rule-based systems to enable AI squads to react instantly to changing battlefield conditions.

By combining these methods, arcade game machines deliver thrilling, responsive AI squad behavior that keeps players engaged and coming back for more.