Arcade machines have long been pioneers in delivering intense horror and psychological thriller experiences through uniquely immersive design principles. Unlike home consoles, arcade cabinets create physical captivity—players stand before a large screen enclosed in a often darkened cabinet, amplifying claustrophobia and vulnerability. Games like "The House of the Dead" or "Poltergeist" utilize light guns that force players into direct interaction with terrifying stimuli, while limited continues create tangible stakes where failure has consequences.

Psychological tension is engineered through constrained mechanics. Fixed camera angles obscure threats, sudden jump scares triggered by proximity sensors, and distorted audio from dedicated speakers disorient players. The cabinet itself becomes part of the horror—vibration motors simulate shocks, while marquee lights flicker during critical moments. Games like "Nightmare" incorporated actual voice actors to verbally intimidate players, blending physical and psychological pressure.

Moreover, arcade horror leverages public performance anxiety. Being watched while playing elevates stress, making panic responses more visceral. The brevity of arcade sessions forces designers to concentrate fear into intense bursts through relentless pacing and unforgiving mechanics. This fusion of physical interface, environmental design, and psychological manipulation ensures arcade horror remains a uniquely chilling experience where the machine itself becomes an antagonist.