Manufacturing arcade game machines involves several significant cost drivers that impact overall production expenses. The primary factors include:

1. Electronic Components: High-quality displays, processors, and sound systems are essential for immersive gameplay but contribute heavily to costs.

2. Custom Hardware: Unique controllers, joysticks, and buttons tailored for arcade games often require specialized manufacturing.

3. Labor Costs: Skilled labor for assembly, testing, and quality control adds to expenses, especially in regions with higher wages.

4. Licensing and Software: Licensing popular games or developing proprietary software can be a major expense.

5. Materials and Durability: Arcade machines need robust materials to withstand heavy use, increasing material costs.

6. Shipping and Logistics: Large, heavy machines incur high transportation and storage fees.

By understanding these cost drivers, manufacturers can identify areas for optimization and improve profitability in arcade game production.