Arcade game manufacturers face significant challenges from piracy and unauthorized copies, which can undermine profits and creativity. To combat this, they employ a multi-faceted approach.

1. Hardware-Based Security: Many manufacturers integrate proprietary hardware or encryption chips into arcade systems, making duplication difficult. Custom circuit boards and unique firmware act as barriers to unauthorized replication.

2. Software Protection: Advanced DRM (Digital Rights Management) and frequent software updates help prevent tampering. Some games require online verification or server authentication to function, deterring offline piracy.

3. Legal Actions: Manufacturers actively pursue legal action against counterfeiters, working with law enforcement to shut down illegal operations and protect intellectual property.

4. Community Engagement: By fostering loyal fanbases and offering exclusive content, manufacturers incentivize players to support legitimate products rather than pirated versions.

5. Innovative Business Models: Subscription services, cloud-based gaming, and limited-edition releases reduce the appeal of pirated copies by providing value-added experiences.

Through these strategies, arcade game manufacturers strive to safeguard their creations while maintaining a thriving industry.