I agree with the observation that 5/8" MDF (Even with a laminate cover) leaves very little room for counter sinking.
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I build cabinets with 3/4" MDF (Not totally true - just keep reading or skip to **). I laminate the outside of my cabinets and glue cabinet cloth to the inside. I don't really need to put the hardware cloth in - I just do. Looks better.
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I use Brackets - for a 24 9/16" wide cabinet (basically with a 23" wide control panel) I use 2" wide strips of sheet 30 1/2" long , I Drill a 1/2" hole centered at the 7/8" Mark - the 2 3/8" Point, I do the same at both ends of the metal strip. ( I remove the metal between to form a screw slot - not really important - but handy when you see that I use four brackets at the bottom - Two to hold the cabinet sides to the base, and one bracket to hold the rear panel and another to hold the front kick plate). Now I drill one 5/16" hole in the center of the metal strip, then I drill one at the 4.75" Point and the 12" point ( I do the same from each end of the metal strip, then remove the metal from the 4.75" point to the 12" point at each end). These /15" slots provide a point to use a castle head screw that is 11/16" long (the one with a big flat washer type ring) The actual screw length - or a 5/8" long screw - just remember the bracket is 1/16" to 3/32" thick. This allows me to use castle head screws to physically bond the brackets to the 1/2" panels after I get all the 3/8" Carriage bolts tightened up. This results in a very tight cabinet.
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I bend 90 degrees at the 3.25" mark (that is 3 1/4") and the 26.50" mark ( the sheet metal is 1/16" thick so when bent it takes up 3/23" of the metal x 2 - 6/32 less length or 3/16" - Just make sure your bracket is 23 1/16 long (this puts the outside panels 23 1/16" apart - hence a 24 9/16" wide cabinet.)..
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When I use a 5/8" MDF Panel I laminate a 3/16" luan panel to the panel. This works great if you want to stain the outside - for one customer I did five Taito Style actually Alladin Games style cabinet and stained them Dark mahogany - they looked great.
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Back to the cabinet.
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I too am concerned with sharp appearances - so I do things the "old Arcade Way"... I use 1/2" MDF for any panel not a side panel, and also laminate the front Kick Panels (the one the Coin Door it mounted on) , I also do the same for the Cabinet Top, the Cabinet Speaker Baffle (for the u-initiated this is the upper panel above the monitor), the Upper Back Panel, and Lower Back Panel (the lower back panel is where the power entry point to the cabinet is - as is the cabinet ventilation fan ( another old arcade style). The back door is 1/2" Plywood - since it isn't mounted but held in place by two plates that extend below the top of the rear lower cabinet panel (remember the Power entry point?). The back door is held in-place by the 7/*' Can Lock (just like they did in the old days - only now you can buy a Cam Lock that isn't a lock at all - just a twist to secure - how cute).
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All the panels that are 1/2" thick panels (except the Back door) are recessed into the 3/4" side panels by 3/16". This is done by routing out a channel to accept these panels into the inside of the 3?4" outer panels. (For this you need to make a router template - basically a piece of 1/4" plywood (or in my case a few pieces of 3/8" polycarbonate that the folks at Laird Plastics gave me really cheap - like less that 1/4" plywood - because it was all scarred up and basically blemished with white spots from some chemical and extreme heat). I use a Corner chisel to get the edges perfect (I have experimented with rounding the edges of the panels - but never liked the results.).
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The Cabinet Brackets (remember the brackets?) pull the whole thing together. The sweet spot is that I use 3/8" Carriage bolts and Flat washers, Nylon Insert Nuts (they call them vibration proof - but just the same, they don't loosen up) and a lock washer. The 3/8" carriage bolts hold the Outer Sides and Cabinet together at 8 Points (four points have two brackets each -since the upper rear bracket is affixed to the upper panel - remember the little castle head screws) and the upper Back Panel), the two on the bottom hold the cabinet to the bottom base and the lower front of the kick plate (cabinet front) and the lower section of the rear lower Panel (the one with the power cord input). In the end - the slots and the 3/8" carriage bolts do a great job of keeping the panels in place and make the cabinet quite sturdy. The castle head screws just eliminate virtually any play in respect to panels and brackets - over kill, but I believe well worth the efforts.
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Like I said - this results in a very tight cabinet when put together )assembled) and without all the fuss of glue or battens, etc. (Except the laminate contact cement or glue used to mount the cabinet cloth).
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There is also one other wonderful benefit - the whole 68" Tall cabinet ships Fed_X or UPS in fiver boxes - Sweet.
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Now, to get around FED-EX or UPS I actually build the sides only 63" tall at their peak. Two sit flat in box #1.
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The front, Back, Top panels and Speaker Baffle are in box two (as are the 5.5" tall Bases with the two rear Caster wheels and the two Front Cabinet levelers (just the Mounting Plates -I send the ;levelers in a small parts box with all the screws and Brackets). I send the Control Panel (Blank if warranted, Punched with populated controls and -062" Molex Pin and Socket Inter Connects, as well as the JAMMA Harness and Game Board Mounting Feet. The JAMMA Harness is already outfitted with required .093" and .062" Pin and Socket connectors as required. I have always liked the .093" and .062" Molex Pin and socket interconnect system... Plain and simple.
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In box four - I send the Speaker, the Marquee Lamp Assembly, the Marquee Mounting Strips (I usually use metal strips that have been formed to hold the Marquee Polycarbonate - which is one piece 5/32" and one piece 7/32" thick = a 3/8" thick Marquee when sandwiched together.). I also send a 7/16" Thick Monitor Face Plate as well (Polycarbonate - naturally). I also send the 10 to 12 foot power cord and a 15-Amp Switcher Power supply as well (also in box four).
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Box five is usually the Happ Pinball Style or Over-Under Coin Door. It comes directly from Happ in a shippable box - so who am I to rebox? What I d perform is the Kick Plate cut-out for the door style selected. This way they just have to bolt it in.
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In the early years I toiled with pre-mounting things like speakers, Power switches, Control Panel Latches and Coin Doors - it is a logistical nightmare - and it means three more boxes to ship. So I assume anyone can put the thing together if I provide step by step instructions (which I print out using Corel Draw (yea - it's ac ommercial - too bad they aren't paying me)...
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I have built and shipped only about thirty two of these cabinets - 28 back in the late 1980's from my home in Warner Robbins Georgia, and four from my shop in Phoenix, Arizona to my friend in Montana (he was the one who wanted Mahogany looking cabinets - no side art, just wood. He is happy and wants me to build more. He "Paiid me" to come to Montana and hook everything up. Don't know why, his handy man was more than capable - but hey - who am I to turn down a trip to Montana and stay in a 6,500 sq foot Log Cabin.
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Now he wants two MAME Cabinets, same deal - Wood Mahogany. This time I am going to film it and make a you-tube.
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Who knows I might just get back into cabinet making as a business instead of a profitable hobby.
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I have built: Atari Centiped Cabinets, Atari Crystal Castles, Ms Pac Man and Gallaga Cabinets this way. As already mentioned. Taito Style cabinets can be easily fabricated this way too.
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I did not come up with this idea - Alladin Games (circa 1960's) did. They modified the Taito Style cabinets to standardize arcade games in "their" numerous Arcades. That was franchise that I would have bought into if I was in the United States back then, instead of trapesing around Eastern Turkey trying to catch Russian Missile and Nuclear Tests - another story altogether - and totally unrelated to this forum.
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Note: I am not soliciting business - I am giving hints as to how you can build a cabinet as good or better than the originals. But if you just want to get a cheap beat up Arcade cabinet and spend a lot of time repairing and modifying it - who am I to criticize. I do that! It's fun. The problem is I can't just box it up and ship it to my friends, I have to "take it to them" and that means a road trip. Which upsets my better half who doesn't understand why grown men play with Video Games. (Maybe I never grew up....

) And she will never understand why I take 2-5 day road trips to take one to some one (they should come and get it if they really want it!!! But - then I wouldn't get to go on the "ROAD TRIP!!!!""").