My suggestion is to start initially with furniture bolts and inserts as long as the structure design is sound. You can always decide to glue it later if you start to have a problem, albeit with more work rebuilding it.
But I'll also state that glue is definitely recommended for an arcade cabinet. Yes, bolt-up furniture is a thing, but unless you are talking about the more costly stuff, usually made with hardwoods, glue is still recommended when assembling anything you want to be sturdy. Unlike an Ikea bookshelf, arcade machines can take a beating and over time some of those joints can loosen and start to fail. Putting a heavy monitor topside will amplify some of those stresses and would really need to be taken into account when designing the structure.
As with anything, the method of construction should be engineered based on the shape and size of the structure, the weight it must support and what it is intended to endure. The correct answer is really something only you can provide, unless you can offer some detailed dimensions, component weights, the type of material and whether you tend to be use it aggressively or are a more conservative player. All of these things come into play when deciding the best build approach.
But if you do decide to go with furniture hardware, selecting the correct ones for the job will go a long way in keeping it sturdy. The best ones have a large diameter with pockets drilled or milled perpendicular to the joint. The large diameter provides more surface area, which reduces the amount of material compression, thereby keeping the joint tighter for longer. But this type of hardware tends to be more costly and really requires a CNC machine to install easily.