Arcade operators employ multiple strategies to handle outdated or non-functional machine hardware, prioritizing environmental responsibility and potential value recovery. Most operators first evaluate machines for resale potential on the secondary market, as vintage cabinets or working components hold significant value among collectors and enthusiasts. For irreparable units, operators typically dismantle cabinets to harvest reusable components like monitors, control panels, coin mechanisms, and artwork, which serve as valuable repair parts for other machines.

The remaining electronic components, particularly circuit boards and power supplies, require specialized handling due to e-waste regulations. Responsible operators partner with certified electronics recycling facilities that properly process hazardous materials like lead solder and cathode ray tubes (CRTs) while recovering precious metals. Many operators participate in manufacturer take-back programs where available, as major producers like Sega and Raw Thrills have established recycling initiatives for their equipment.

Wooden cabinets often get repurposed into new arcade builds or completely recycled through wood processing facilities. Progressive operators document their recycling efforts for sustainability reporting and often work with local recycling authorities to ensure compliance with regional e-waste disposal laws. The industry continues to evolve toward more eco-friendly practices, with some operators now specifically seeking out ENERGY STAR certified replacements and implementing preventive maintenance programs to extend machine lifespans, thereby reducing overall waste generation.