Well I know that now some arcade titles are run off a PS3 (I have seen this for a fact but not a Xbox 360, though they might use these too) which just shows how far consoles have come really.
I think a lot of the problem was to do with Memory, the arcades had more then the home consoles (or their cartridges had) so some things had to be chopped to get them on the console. Arcades are dying out now, most gamers have a console and the money to get games they want....arcades aren't needed as much anymore.
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