Arcade operators face the ongoing challenge of balancing skill-based and luck-based prizes to maintain player engagement while ensuring profitability. Skill-based games, such as basketball shooting or rhythm games, reward players' abilities and practice, often leading to higher satisfaction and repeat visits. However, these can result in consistent prize payouts, impacting the arcade's bottom line. In contrast, luck-based games, like coin pushers or claw machines, rely on random chance, making prize distribution unpredictable and easier to control financially. To strike a balance, operators often mix both types, adjusting game difficulty or prize values based on data analytics. For instance, they might tighten claw machine grips during peak hours or offer tiered prizes to cater to different skill levels. This approach keeps the experience exciting for casual players while still challenging dedicated gamers. Additionally, operators must comply with local regulations that distinguish games of skill from gambling, ensuring ethical practices. By carefully managing this balance, arcades create an inclusive environment that appeals to a broad audience, driving long-term success through varied prize structures and fair gameplay.