History of Coin-Operated Arcade Games
7 Minute Read
Video games have evolved from a small hobby into a massive industry. Now, many big games are released each year. The eSports scene has also experienced unprecedented growth in recent years. Here is a brief history of arcade games to learn more about them.
For younger people, it may seem like game consoles have always been around. Anyone under 25 likely grew up with a PlayStation or Xbox at home.
The truth is that the ubiquity of consoles is relatively new.
Long before the home console, there was the arcade. So, to understand the history of gaming, you need to know the history of arcade games.
Coin-operated arcade games drove the popularity of video games for decades. Even after the Nintendo Entertainment System came out in 1983, it changed console gaming. However, arcade cabinets still played a big role in the gaming industry.
It’s easy to understand why. A video game console can be expensive, and that’s not counting the games you need to purchase. On the other hand, an arcade cabinet offers the same amount of fun for a handful of quarters.
We’re getting ahead of ourselves, though. Read on to learn about the history of arcades, starting from the earliest arcade games.
Humble Beginnings
What do you picture when you hear the word ‘arcade?’ Whether you remember the dimly lit arcades of the ’90s or modern chains like Dave & Busters, you’re probably picturing a room with many cabinets and games.
You might not realize that the familiar arcade trappings we all know and love arose from a much different kind of gathering place. Before arcades existed, there were amusement halls.
An amusement hall was like an arcade. It was a place for people to gather and have fun. They spent money on coin-operated machines. Amusement halls existed before arcade games.
So, what kind of entertainment did amusement halls offer? An amusement hall had two main draws: slot machines and pinball.
Due to the gambling laws of the time, slot machines didn’t last long in most amusement halls. Pinball machines, on the other hand, became massively popular.

The history of pinball is a critical element in the growth of arcades. They were some of the most famous early coin-operated machines, paving the way for arcade cabinets. They remain a fixture of many arcades today.
From Spacewar! to Space Invaders
In 1971, the world tilted on its axis. Not literally, of course, but something seismic shifted in the realm of entertainment. That year, Nolan Bushnell and Ted Dabney, the visionary minds behind Atari, unleashed Computer Space, the first-ever arcade video game. Imagine a clunky cabinet spitting out pixelated rockets soaring through a starry void, battling flying saucers with reckless abandon – that was the dawn of a revolution.
Although the first arcade game wasn’t built until 1971, we must return to 1962 to get the complete picture of arcade history. That was the year Steve Russell created one of the first video games: Spacewar!
It was a simple game by modern standards, featuring two spaceships that could fire missiles at each other. At the time, though, it was a breakthrough.
Spacewar! Inspired two students at Stanford University, Bill Pitts and Hugh Tuck, to create Galaxy Game, a version of Spacewar! that was coin-operated and ran on a computer housed in a wooden console.
At the same time, Nolan Bushnell and Ted Dabney worked with Syzygy Engineering on another coin-operated version of Spacewar! Called Computer Space. Computer Space would become the first commercial arcade game.
The following year, Atari released Pong, which was much more successful than Computer Space and brought the idea of arcade gaming to a broader audience. These were humble beginnings that sparked the video game revolution. Atari began with Computer Space’s innovative technology and Pong’s straightforward gameplay. They laid the groundwork for an industry that would attract billions and transform pop culture forever. Next time you are watching a screen, whether you are fighting aliens or racing cars, remember this. It all started with a rocket, a paddle, and two creative people who dared to dream in pixels.
Following the success of Pong, more game companies began developing arcade games. More and more titles would hit the market throughout the ’70s, with racing games being the most popular.

Then, in 1978, Taito released Space Invaders, which changed arcades forever. Space Invaders was a huge success. It created the shoot-’em-up genre and marked the beginning of the golden age of arcade games.
The Arcade Golden Age
As the ’70s closed, arcades experienced their biggest boom yet, becoming major fixtures throughout the ’80s. You know how big arcades were if you grew up in that decade (or watched Stranger Things).
While Space Invaders kicked off the arcade craze, it was joined by another significant release: Atari’s Asteroids, which became the company’s best-selling arcade game.
In 1980–a year after Asteroids and two years after Space Invaders–Pac-Man arrived. Soon, Pac-Man fever swept the nation, making it clear that the ’80s would be the decade of the arcade.
Developed by Namco and published in the United States by Midway (two companies that would become arcade juggernauts), Pac-Man revolutionized arcade games in several essential ways.
Pac-Man was the first mascot character in gaming, emerging years before characters like Mario and Sonic. It also featured some of the earliest video game cutscenes.
The game was one of the first to appeal to both men and women: the game’s creator, Toru Iwatani, aimed to create a game that wasn’t based on violence or sports, in the hope that such a game would attract women to arcades.
Evolving Arcade Playstyles
Pac-Man introduced a unique game genre into arcades: the maze chase. This was very different from the shooting and racing games that came before it. As the Golden Age continued, many new genres appeared.
One notable example was Donkey Kong, which introduced many people to the platformer genre, a popular game style that remains popular today. Like Pac-Man, Donkey Kong was an arcade titan with an enormous legacy.
Konami released Scramble in 1981, which is considered the first side-scrolling shooter. This was hugely influential, and side-scrolling shooters became a staple of gaming until the advent of three-dimensional consoles.
The journey brought digitized sprites to the arcade in 1983; that same year, Cinematronics released Dragon’s Lair, the first game to use cel-animated video (with art by renowned animator Don Bluth).
Puzzle platformers like Bubble Bobble, adventure games like Gauntlet, beat ’em-ups like Double Dragon, and more were released throughout the ’80s.
At the same time, pre-existing game genres were continually refined throughout the decade.
Namco’s Pole Position, from 1982, was not only one of the most popular racing games ever, but it also introduced 16-bit graphics to the arcade. Finally, in 1981, Defender introduced more complex control schemes to the world.
Street Fighter Enters the Fray
As the ’80s drew to a close, so did the golden age of arcade games. That doesn’t mean arcades disappeared, though–far from it. The early ’90s saw the release of a game that rocked the arcade world.
In 1991, Capcom released Street Fighter II, a game many still consider the pinnacle of the fighting game genre.
Fighting games existed before Street Fighter II, but none had ignited the competitive scene as this release did. It changed everything by featuring a six-button control scheme, a wider variety of special moves, and more.
During the golden age of arcade games, competitions arose over who could achieve the highest score in games like Pac-Man. As Street Fighter’s popularity grew, competition in the arcade space became more direct.
Street Fighter II’s tight controls, deep strategy, and two-player versus mode made it the perfect game for head-to-head skill tests.
This led to the development of a vibrant fighting game community that persists to this day. Of course, the runaway success of Street Fighter II led to a boom in fighting game development. As a result, several new fighting franchises emerged, including Tekken and Mortal Kombat.
Arcade Hero: Meet Eugene Jarvis, Mastermind of Defender and Robotron
In the golden age of arcades, quarters powered fun games. Joystick blisters were badges of honor. One name stood out: Eugene Jarvis. This visionary isn’t just another game designer; he is an arcade alchemist, conjuring up classics that ignited imaginations and redefined the genre.
Jarvis’ early days were spent tinkering with Atari pinballs, honing his skills before unleashing his creative fury on the world of video games. In the early 1980s, he struck gold with Defender, an exhilarating shooter where you soared through a starry sky, blasting alien invaders and rescuing kidnapped humans. The dual-joystick controls, innovative scoring system, and addictive gameplay made it an instant phenomenon, propelling Jarvis to legendary status in the arcade world.
But Jarvis wasn’t content with one masterpiece. He followed up Defender with Robotron: 2084, a dystopian robo-rampage that pushed the boundaries of arcade action. With its frenetic twin-stick controls, waves of relentless enemies, and iconic “human error” message, Robotron became a cult classic, testing reflexes and challenging players to new skill levels.
Beyond these iconic titles, Jarvis’ influence reaches far and wide. He co-founded Vid Kidz, a company that makes educational games. This demonstrates his commitment to utilizing games for more than just entertainment. Later, in the 90s, he brought his magic touch to the driving genre with the Cruis’n series, putting players behind the wheel of virtual hot rods and redefining arcade racing experiences.
Today, Jarvis is an active force in the industry, leading his own development studio, Raw Thrills Inc, which launches new hit titles yearly. His legacy, however, is etched in the annals of arcade history. From the frantic dogfights of Defender to the neon-drenched streets of Cruis’n, Jarvis’ games are more than just pixels and circuits; they’re testaments to the power of imagination, innovation, and pure, unadulterated fun.
The Arcades of Today
While the fighting game craze helped arcades persist through the ’90s, their popularity steadily declined. By the early 2000s, game consoles were more commonplace, eliminating the need for arcades.
In addition, players were interested in longer narratives and more complex gameplay, which arcade games aren’t designed to provide. Finally, the rise of online gaming services, such as Xbox Live, also contributed to the decline of arcades.
Arcades found a way to bounce back; they expanded their options. Many arcades are now part of larger Family Entertainment Center experiences, offering a variety of activities, food, drinks, games, and redemption counters.

Today, massively successful restaurant chains incorporate arcade games into their experiences. They offer families a place to get a good meal and entertainment.
Arcades are also experiencing a resurgence due to nostalgia. Children who grew up in the 1980s and 1990s have fond memories of visiting arcades. Now, they are opening their own arcades for their friends.
Since many of these arcades are aimed at adult audiences who grew up on arcade games, they also offer alcohol, leading to the term ‘barcade.’
Barcades nationwide offer classic arcade titles and brand-new games that preserve the traditions of the arcade. However, the main factor in their growth has been Family Entertainment Centers, which continue to evolve to include miniature golf, climbing walls, laser tag, VR, batting cages, ropes courses, and video games.
The current landscape of video arcade game manufacturers includes a robust lineup of companies, including Raw Thrills, LAI Games, Baytek Entertainment, ICE Games, and more.
Remembering the History of Arcade Games
Although arcades have evolved into Family Entertainment Centers, classic arcade games are still fond. Titles like Donkey Kong and Mortal Kombat are revered for their impact on the industry.
It’s hard to say how much arcade games helped gaming grow. You can’t talk about video games without first mentioning the history of arcade games.
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