Arcade video games takes player input from its controls, processes it through electrical or computerized components, and displays output to an electronic monitor or similar display. All arcade video games are coin-operated or accept other means of payment, housed in an arcade cabinet, and located in amusement arcades alongside other kinds of arcade games. Until the late 1990s, arcade video games were the largest and most technologically advanced segment of the video game industry.

Early prototypical entries Galaxy Game and Computer Space in 1971 established the principle operations for arcade games, and Atari's Pong in 1972 is recognized as the first successful commercial arcade video game. Improvements in computer technology and gameplay design led to a golden age of arcade video games, the exact dates of which are debated but range from the late 1970s to mid-1980s. This golden age includes Space Invaders, Pac-Man, and Donkey Kong. The arcade industry had a resurgence from the early 1990s to mid-2000s, including Street Fighter II, Mortal Kombat, and Dance Dance Revolution, but ultimately declined in the Western world as competing home video game consoles such as the Sony PlayStation and Microsoft Xbox increased in their graphics and gameplay capability and decreased in cost. Nevertheless, Japan, China, and Korea retain a strong arcade industry in the present day.