The arcade game industry has evolved significantly from its golden age, yet several business models continue to drive distribution and profitability. The traditional coin-operated model remains foundational, where players insert coins or tokens directly into arcade cabinets for gameplay sessions. This pay-per-play approach generates immediate revenue while allowing operators to adjust pricing based on game popularity and location value.

Location-based entertainment centers represent another dominant model, particularly family entertainment centers (FECs) that combine arcade games with other attractions like laser tag, bowling, and redemption games. These establishments typically utilize card systems instead of coins, where customers purchase reloadable cards that track credits and enable package deals. This model encourages longer visits and higher per-customer spending through bundled entertainment options.

The emerging subscription and membership model has gained traction in modern arcades, offering unlimited gameplay for a fixed monthly or annual fee. This approach builds customer loyalty and provides predictable recurring revenue while reducing the psychological barrier of repeated payments. Many establishments combine this with tiered membership levels that include additional perks like priority access or discounts on food and beverages.

Corporate location placement constitutes another significant distribution strategy, where arcade operators place machines in high-traffic venues like shopping malls, movie theater lobbies, restaurants, and hotels. Revenue is typically shared between the arcade company and the hosting location through revenue-sharing agreements or fixed rental fees. This model maximizes exposure while minimizing overhead costs associated with maintaining dedicated arcade spaces.

Digital and mobile adaptations have created new distribution channels, with some companies developing arcade-style games for mobile platforms while maintaining the essence of arcade gameplay mechanics. These often employ freemium models where basic gameplay is free, but advanced features or continued play requires in-app purchases. Meanwhile, retro and barcade concepts combine classic arcade gaming with social drinking environments, creating premium experiences that command higher price points through atmosphere and nostalgia.