Arcade machines have historically approached player customization of avatars and characters through various technical implementations, often constrained by their specialized hardware. Early arcade systems typically offered limited customization through character selection screens rather than true personalization, as these machines prioritized quick gameplay sessions over persistent profiles. However, as technology advanced, several methods emerged to accommodate player customization.

Many modern arcade cabinets incorporate memory card systems, particularly in Japanese arcades, where players can save customized characters, progression data, and unlocked items. Games like the Tekken series and Initial D Arcade Stage pioneered this approach, allowing players to insert cards that store their personalized fighting characters or tuned vehicles between sessions. The data includes appearance modifications, skill trees, equipment loadouts, and cosmetic alterations specific to the arcade title's capabilities.

Contemporary arcade networks have further expanded customization possibilities through online profiles. Systems like Bandai Namco's Banapassport and Sega's Aime cards enable players to maintain extensive customization databases on remote servers. When players scan their cards, the arcade machine downloads their profile, including meticulously crafted avatars, character modifications, and unlocked customization options accumulated through repeated play.

The technical implementation varies significantly between arcade platforms. Some cabinets feature internal storage with limited capacity, restricting customization complexity, while others rely entirely on network connectivity for extensive personalization. Fighting games often allow costume color variations and accessory selection, while racing games might store vehicle liveries, performance modifications, and driver appearance options.

Hardware limitations continue to influence arcade customization approaches. Unlike home consoles with abundant storage, arcade machines must balance customization depth with operational practicality, leading to innovative solutions like encrypted save data and cloud-based profile systems that maintain the quick-start nature of arcade gaming while supporting personalization. This evolution demonstrates how arcades have adapted to player expectations for character ownership despite their traditionally transient play environment.