The retro gaming world just lost one of its biggest players. Arcade1Up, the company that made owning a home arcade cabinet affordable and accessible, has reportedly shut down operations as of Friday, December 13, 2025. An internal email leaked to the company’s beta team confirmed the news, stating that for the majority of employees, Friday was their final day.
The email, which spread rapidly across social media platforms including Reddit and Bluesky, offered no details about the future of the brand or what would happen to ongoing projects. For a company that launched just seven years ago and sold over 3 million arcade machines, this shutdown marks a sudden end to what seemed like a thriving business.
How Arcade1Up Changed Home Gaming
Founded in 2018 as a subsidiary of Tastemakers, Inc., Arcade1Up started with a simple but brilliant idea. CEO Scott Bachrach recognized that while people loved the idea of owning arcade cabinets, the full-size versions cost thousands of dollars and weighed hundreds of pounds. His solution was creating three-quarter scale replicas that looked authentic, played like the originals, but cost under $500 and could fit in any room.
The timing was perfect. Arcade1Up launched right when retro gaming nostalgia was hitting its peak. Their first cabinets featuring Street Fighter II, Pac-Man, and Galaga flew off shelves at Walmart and Best Buy. The company quickly secured licensing deals with major publishers like Capcom, Bandai Namco, Midway, and Konami, bringing dozens of classic games back into official circulation.
Over seven years, Arcade1Up expanded beyond simple cabinets. They released deluxe editions with light-up marquees, online multiplayer capabilities, virtual pinball machines, light gun games like Big Buck Hunter, and even sit-down racing cabinets. Their product lineup eventually included everything from Mortal Kombat to NBA Jam to Marvel vs. Capcom, with cabinets featuring the original artwork and authentic controls that made these games legendary.
The Warning Signs Were There
While the shutdown news shocked many fans, some saw it coming. Community members on Reddit noted that Arcade1Up had been reusing licenses and hardware while steadily raising prices. Early cabinets sold for $299 during the COVID era, making them impulse purchases for nostalgic gamers. But prices crept up to $400, then $500, and eventually $750 for premium models like the X-Men cabinet.
The quality-to-price ratio became a concern. As costs increased, competitors like Evercade entered the market with higher-quality alternatives. Retail visibility also declined, with users commenting they couldn’t remember the last time they spotted an Arcade1Up cabinet in stores. The combination of higher prices, market saturation, and increased competition created a perfect storm.
What Happens to Online Features
One major concern for existing owners is what happens to cabinets with online multiplayer features. Games like Killer Instinct, Mortal Kombat, and NFL Blitz used Arcade1Up’s servers for online play. The good news is that Code Mystics, the developer behind the Gemini online code used in these machines, built a fallback mode specifically for this scenario.
According to Code Mystics, the fallback mode will allow online multiplayer to continue without official server support. Users can manually add other players to their list and set up port forwarding on their routers to remain visible. While it requires more technical knowledge than the plug-and-play original setup, at least the functionality won’t disappear entirely. Instructions for setting up this peer-to-peer mode are already being shared across Arcade1Up communities.
The Arcade Community Reacts
The response from the retro gaming community has been overwhelmingly disappointed but understanding. Many fans acknowledged that while Arcade1Up’s build quality wasn’t perfect and prices got too high, the company filled a unique niche. They rescued numerous games from licensing limbo and made arcade gaming accessible to people who never could have afforded full-size cabinets.
Arcade1Up was essentially the only company producing licensed aftermarket arcade machines at scale. Without them, fans lose access to affordable, official versions of classics like the Marvel vs. Capcom series, early Mortal Kombat games, and Konami’s Teenage Mutant Ninja Turtles beat-em-ups. While emulation exists, many collectors and enthusiasts preferred owning legitimate hardware with proper licensing.
Frequently Asked Questions
Is Arcade1Up officially shut down?
While there’s been no official public statement, an internal email to the beta team confirmed that Friday, December 13, 2025 was the last day of operations for the majority of employees. The email stated they cannot comment on the future of the brand.
Will my existing Arcade1Up cabinet still work?
Yes, your cabinet will continue to function normally. The games are stored locally on the hardware, so offline play is completely unaffected by the company’s closure.
What happens to online multiplayer features?
Cabinets with online multiplayer use a fallback mode developed by Code Mystics. This peer-to-peer system will allow online play to continue without official servers, though it requires manual setup including port forwarding on your router.
Can I still get warranty support or replacement parts?
This remains unclear. With operations shut down, warranty support and replacement parts will likely become unavailable unless another company acquires the brand and its support obligations.
Will Arcade1Up cabinets become collector’s items?
Potentially, yes. Limited production runs and the company’s closure could increase the value of certain cabinets, especially rare editions or those featuring popular licenses. However, the large number of units sold means common models may not appreciate significantly.
Could another company buy the Arcade1Up brand?
It’s possible. The leaked email mentioned uncertainty about the brand’s future, which could indicate potential acquisition talks. Companies in the retro gaming space might see value in the brand recognition and existing licenses.
Are there alternatives to Arcade1Up cabinets?
Yes, companies like Evercade offer bartop arcade machines with expandable game libraries. There are also DIY options using Raspberry Pi, though these lack official licensing and the plug-and-play convenience of commercial products.
Conclusion
Arcade1Up’s closure marks the end of an era for accessible retro arcade gaming. The company successfully brought the arcade experience to millions of homes, proved there was massive demand for nostalgic gaming hardware, and rescued countless classic games from obscurity. While rising prices and competition created challenges, their impact on the retro gaming market cannot be overstated. For the thousands of people who bought these cabinets and relived their childhood memories, Arcade1Up delivered something special. The machines may continue working in living rooms and game rooms across the world, but the company that made them possible has inserted its final coin.