Arcade machines handle dynamic cloth and hair physics through a combination of specialized hardware and optimized software algorithms. Unlike modern consoles, arcade cabinets utilize custom-designed graphics processors that prioritize real-time performance for specific game mechanics. The physics simulations typically employ simplified mass-spring systems for cloth, where virtual particles connected by springs create realistic fabric movement without excessive computational overhead. For hair, arcade systems often use pre-baked animation cycles combined with procedural movement that reacts to character motion and environmental factors like wind or impacts.

The hardware in arcade machines frequently incorporates dedicated physics coprocessors that handle these simulations separately from the main rendering pipeline. This allows for smooth performance even when multiple characters appear on screen. Developers also use clever optimization techniques such as level-of-detail adjustments, where physics calculations become simpler as objects move farther from the camera.

Many arcade titles implement canned physics routines that trigger specific animations rather than running fully dynamic simulations. For instance, a character's hair might switch between predetermined movement patterns based on whether the character is running, jumping, or standing idle. This approach conserves processing power while maintaining the illusion of realistic physics. The limited but focused hardware configuration of arcade machines enables them to deliver impressive visual effects that were often ahead of their home console counterparts during their respective eras.