We think of arcade games more in terms of
"old style" games like Pac Man, Defender, Space Invaders,
etc. rather than the newest high-tech arcade games replete
with steering wheels, skateboards, and the like.
Twitchspeed:
Marc Prensky's
Twitchspeed.com has developed arcade-style games (like a Pac
Man-type game called Cubedude) that can be used for training. No
inexpensive modifiable version for educators yet, but we're
hoping!
Game Engines:
Game Engines like the Games Factory from
Clickteam and the free
Game Maker
from Mark Overmars can be used to author
arcade-style games.