Arcade machines achieve their iconic dynamic lighting through a combination of specialized hardware and clever programming techniques. Classic cabinets primarily relied on CRT monitors, which use electron beams to illuminate phosphor dots on screen, creating vibrant raster graphics. The illusion of dynamic lighting was achieved through rapid screen redraws and color cycling - programmers would manually manipulate beam intensity and position to simulate effects like explosions or muzzle flashes.

For ambient lighting, many cabinets incorporated physical elements backlit by programmable bulbs. The marquee signs often used rotating color wheels with timed incandescent bulbs to create chasing light patterns. Later generations adopted RGB LED arrays behind control panels and cabinet edges, controlled via simple I/O boards that responded to in-game events.

Unique effects like Nintendo's DK-62 monitor in Donkey Kong employed light-sensitive cells behind the screen that triggered color overlays when specific bright areas were drawn. Shooting games like Duck Hunt used precisely timed CRT scans combined with photodiode sensors in light guns to create interactive lighting feedback.

Modern arcade machines leverage addressable LED strips, servo-controlled mirrors, and even laser projectors synchronized with game software through APIs like Open Lighting Architecture. This allows contemporary cabinets to produce sophisticated effects that extend beyond the screen into the entire physical cabinet.