An Arcade RPG is a vaguely defined genre, but it can basically be summed up as an action game (whether it's a platformer, side-scroller, beat 'em up, etc.) that includes the trappings of an RPG. This includes elements like equipment, level-ups, and decision-making. However, these elements are often too minor to call them proper RPGs. Some might just brand them "Action RPGs," but while that is true of some of them, many lack the focus on story, in-depth customization, or lengthy campaigns that you'd usually associate with the term.

Started out with early arcade games taking influence from Dragon Quest, eventually evolved into the mission-based hack-n-slash loot RPGs like Diablo, Monster Hunter, and PSO.