The manufacturing of an arcade game machine involves a complex cost structure that combines hardware, software, and physical construction expenses. First, the electronic components form a significant portion of the cost, including the main PCB (Printed Circuit Board), which can range from $200 to $800 depending on complexity. The display system, typically a high-quality CRT or modern LCD screen, adds another $150 to $500. Input devices like joysticks, buttons, and trackballs contribute $50 to $200, while the sound system with amplifiers and speakers costs approximately $100 to $300.

The physical cabinet construction represents another major expense. Wooden or metal cabinets require materials costing $200 to $600, plus manufacturing and finishing processes adding $300 to $800. Custom artwork and graphics on the cabinet can amount to $100 to $400 depending on the design complexity. The power supply unit and wiring harnesses typically add $50 to $150 to the total cost.

Software development constitutes a substantial investment, with game programming and design costs ranging from $5,000 to over $100,000 for original titles. Licensing existing intellectual property can add thousands in royalty fees. Additional expenses include cooling systems ($50-$150), coin mechanisms or card readers ($100-$300), and lighting effects ($50-$200). The final assembly, quality testing, and packaging contribute another $200 to $500 per unit. When considering economies of scale, manufacturers can reduce per-unit costs significantly, with complete arcade machines typically costing between $1,500 and $4,000 to produce before markup, though premium models can exceed $7,000 in production costs.