Skill-based matchmaking (SBMM) is a crucial component in modern arcade games, designed to pair players of similar ability levels for a fair and engaging experience. While often associated with competitive shooters, SBMM principles are widely applied in various arcade genres. The most common types include ranking systems, performance-based metrics, hidden MMR, and engagement-optimized algorithms.

Ranking systems are one of the most visible forms of SBMM. Players are assigned a public rank or tier (e.g., Bronze, Silver, Gold) based on their wins and losses. This system, seen in games like fighting games or arcade-style sports titles, creates clear goals for progression and ensures matches are made between players in adjacent tiers. It is transparent but can sometimes lead to anxiety around losing rank.

Performance-Based Metrics offer a more nuanced approach. Instead of relying solely on win/loss records, these systems analyze in-game performance. Metrics can include accuracy, survival time, combo length, or score per minute. This is common in score-driven arcade shooters or puzzle games, where it helps match players who have similar technical proficiency, even if their overall win rates differ.

Hidden MMR (Matchmaking Rating) is a behind-the-scenes algorithm used in many casual arcade games. Unlike a public rank, a player's MMR is a secret number that fluctuates with every game. The system quickly adjusts to find a player's skill level to provide balanced matches without the pressure of a visible ranking. This is ideal for maintaining a low-stakes, fun environment while still ensuring fairness.

Finally, Engagement-Optimized Matchmaking prioritizes player retention. This type might occasionally pit a player against slightly easier or tougher opponents to create a varied experience—a rewarding win after a losing streak or a challenging match to spur improvement. The goal is to maximize fun and keep players engaged over the long term, often used in free-to-play arcade titles.

In conclusion, arcade games utilize these SBMM types, often in combination, to create the balanced yet exciting gameplay that keeps players returning. The choice of system depends heavily on the game's genre and its target audience's preferences for competition or casual play.