Arcade machines handle player-created tournament brackets through various methods depending on the era and sophistication of the equipment. Modern arcade cabinets, particularly those designed for competitive fighting games like Tekken 7 or Street Fighter V: Type Arcade, often feature sophisticated built-in tournament systems. These systems allow players to directly input participant names, generate randomized or seeded brackets, and track matches automatically on the machine itself. The results are recorded, and the bracket updates after each match until a winner is crowned.

For older or less advanced machines, the process is typically manual. Players often organize their own brackets using physical paper charts, whiteboards, or even dedicated bracket apps on their smartphones. The arcade machine itself simply serves as the platform for each individual match, while the overall tournament structure is managed externally by the players or event organizers.

Some arcades enhance this experience through networked systems. Establishments like Japan's Round1 venues sometimes use a central server that connects multiple cabinets. This allows for the creation of tournament brackets that can be accessed from any machine on the network, providing a more seamless and organized competitive experience. These systems represent the most advanced method of handling player-created tournaments in arcade settings.

Ultimately, while classic arcade games weren't designed with tournament brackets in mind, the modern competitive scene has driven the development of both embedded software solutions and external organizational methods to facilitate player-run competitions.