Arcade game manufacturers face the challenge of balancing production costs with retail pricing to ensure profitability while offering attractive gaming experiences. To achieve this, they employ several strategies.

First, manufacturers optimize production by using cost-effective materials and modular designs, allowing for scalable manufacturing. Bulk purchasing of components and outsourcing non-core production steps also help reduce expenses.

Second, they focus on high-demand game concepts that appeal to broad audiences, ensuring steady revenue streams. Licensing popular franchises or incorporating innovative gameplay mechanics can justify higher retail prices.

Third, manufacturers adopt flexible pricing models, such as tiered pricing for different markets or revenue-sharing agreements with arcade operators. This ensures affordability for smaller venues while maximizing profits in high-traffic locations.

Lastly, long-term maintenance and upgrade plans extend the lifecycle of arcade machines, improving return on investment. By carefully managing costs and pricing strategies, arcade game manufacturers sustain a profitable business while keeping the industry vibrant.