While traditional arcade machines were closed systems, modern interpretations and emulators have opened doors for player creativity. The concept of player-generated content in arcades operates differently from PC gaming, primarily existing in two spheres: modern indie arcade cabinets and the emulation scene.

Indie developers are now creating arcade games with built-in modding support. These machines, often running on systems like Raspberry Pi or PC-based hardware, allow operators or players to modify game parameters, create new levels, or even design custom characters through accessible software tools. This approach brings a PC-like modding culture to the physical arcade space.

The most significant area for mods is through emulation. Software like MAME (Multiple Arcade Machine Emulator) allows enthusiasts to not only play classic games but also modify them. These modifications range from simple ROM hacks—changing sprites, difficulty levels, or game mechanics—to more complex projects like translating games or creating entirely new "homebrew" games that run on arcade hardware.

Furthermore, the custom arcade cabinet community is a form of large-scale physical modding. Builders create unique cabinets, often incorporating multiple games, custom control panels, and personalized artwork, making each machine a unique piece of player-generated content. This blends hardware and software modification, celebrating individual creativity within the arcade format.

Ultimately, while commercial arcades rarely support official mods, a vibrant ecosystem of hobbyists and indie developers ensures that the spirit of player-generated content continues to thrive, preserving and evolving arcade culture for new generations.