The vibrant world of arcade gaming relies on a delicate economic equilibrium. Manufacturers must deliver compelling, reliable performance that withstands constant public use while carefully managing hardware costs to maintain profitability. This balance is achieved through several strategic approaches.

First, manufacturers employ precise component selection. Rather than using cutting-edge, expensive PC components, they typically utilize specialized, cost-effective System-on-Chip (SoC) boards or slightly older mobile processors that provide adequate performance for dedicated game software. This "good enough" philosophy extends to displays, where high-quality commercial-grade LCDs replace consumer televisions, offering better durability without unnecessary features.

Custom hardware solutions represent another key strategy. While developing proprietary boards requires initial investment, it eliminates licensing fees for standard architectures and allows perfect optimization for specific game requirements. This targeted approach prevents paying for unused capabilities, much like how classic arcade systems achieved remarkable results with hardware far less powerful than contemporary home computers.

The brutal operating environment of arcades demands exceptional durability. Manufacturers invest strategically in components facing physical stress: industrial-grade microswitches for controls, reinforced joystick mechanisms, and coin-handling systems built to withstand constant use. This selective reinforcement ensures longevity where it matters most while using standard components in less critical areas.

Thermal management illustrates this cost-performance balancing perfectly. Rather than implementing expensive liquid cooling, most manufacturers use optimized airflow designs with strategically placed fans and heatsinks. This provides adequate cooling for continuous operation without over-engineering the solution.

Lifecycle planning further optimizes the equation. Manufacturers design hardware to remain relevant for the typical 3-5 year arcade lifespan, avoiding over-specification that wouldn't generate additional revenue. Modular designs allow component-level repairs instead of full board replacements, reducing long-term ownership costs for operators.

Through these methods—strategic component selection, targeted customization, durability-focused engineering, and lifecycle-aware design—arcade manufacturers create hardware that delivers the performance players expect at costs that sustain the industry. This careful balancing act continues to power the arcade experience, from neighborhood barcades to major entertainment centers worldwide.