Unlike modern video games with vast storage for complex storylines, classic arcade machines employed ingenious, hardware-limited methods to create narratives that branched based on player skill. The primary mechanism was Dynamic Difficulty Adjustment (DDA). Games would subtly alter the game's challenge level in real-time based on the player's performance. A struggling player might face fewer enemies or slower patterns, guiding them down an easier narrative path, often leading to an early conclusion. A highly skilled player would encounter more aggressive foes and complex scenarios, unlocking hidden levels and the "true" ending. This branching was not always a explicit choice but a consequence of performance.

Another technique was the use of Score and Timer Gates. Achieving a high score by a specific level or defeating a boss within a time limit could trigger a branching path. For instance, in games like "Ninja Gaiden," flawless performance allowed players to access special stages that advanced the plot differently. The narrative progression was directly tied to the player's ability to execute precise actions.

Furthermore, arcade narratives were often minimalist, conveyed through brief cutscenes between levels. The "branching" was less about dialogue choices and more about which set of levels or cutscenes a player unlocked. A player who died frequently might only see the basic failure sequence, while a expert player who completed the game with minimal losses would be rewarded with an extended, conclusive ending. This design brilliantly encouraged replayability, as players were motivated to "see the real story" by improving their skills, ensuring a direct and rewarding link between player mastery and narrative payoff.