Arcade machines have evolved to incorporate player-created content as a lucrative revenue stream. Here’s how they handle monetization:

1. In-Game Purchases: Many modern arcade games allow players to buy custom skins, characters, or levels created by other users, sharing profits with creators.

2. Licensing Deals: Popular player-made content can be licensed by arcade operators or developers, generating royalties for creators.

3. Tournaments & Prizes: Arcades host competitions where players submit content, with winners earning cash or in-game rewards, driving engagement and sales.

4. Subscription Models: Some arcades offer premium memberships granting access to exclusive player-created content, splitting revenue with contributors.

5. Ad Revenue: Ads displayed alongside player-generated content can generate income, shared between arcades and creators.

By leveraging these strategies, arcade machines turn player creativity into a sustainable business model.