The production of arcade machines involves a complex interplay of factors that significantly impact the final cost. While nostalgia paints them as simple cabinets, modern manufacturing reveals several substantial cost drivers that determine their price point.

A primary driver is the custom hardware and components. Unlike mass-produced consumer electronics, arcade machines often require specialized parts. This includes the CRT or high-quality LCD display, which is a major expense, especially for authentic recreations that use heavy, imported CRT tubes. The control panel is another significant cost, featuring specialized joysticks, high-durability buttons, trackballs, and lighting, all built to withstand intense public use. The internal computing hardware, whether a custom PCB (Printed Circuit Board) for classic games or a modern PC-based system for newer ones, also adds considerable expense.

The cabinet itself is a major factor. The cost of materials—typically medium-density fibreboard (MDF) or plywood—fluctuates with market prices. The construction process is labor-intensive, involving precise cutting, assembly, sanding, and finishing. High-quality side art, marquees, and bezels are professionally printed on vinyl or acrylic, requiring graphic design work and specialized printing processes that add to the overall cost.

Perhaps one of the most overlooked yet critical cost drivers is software licensing. For manufacturers producing cabinets with licensed games, a substantial fee must be paid to the game's intellectual property holder. This licensing cost can be a significant percentage of the machine's total production expense, especially for well-known, popular titles that drive consumer demand.

Finally, labor and assembly contribute heavily. Skilled technicians are needed to wire the complex internals, install and configure hardware and software, and ensure everything functions perfectly. This assembly is difficult to fully automate, making it a persistent and significant driver of the final production cost.