I have only been researching arcade cabinet making for a month, and have not built one yet so my knowledge and opinion are limited. Everything I have gathered so far though has pointed to MDO being the most ideal wood. Extra so if you are going to paint it, since it has such a smooth uniform surface.
This is a quote from the 2nd edition of John St Clair's book "Project Arcade":
"Despite the higher cost, you’ll be very happy choosing MDO for your cabinet.
Working with MDO is easier than working with either plain plywood or
MDF, and gives you the best features of both. Having used plywood, MDF, and
MDO in various builds in the past, I will never again use anything but MDO,
given the choice."
The only problem is it seems ultra hard to find. Which is why I made the post (that you kindly responded to) asking if anyone knew where to find it in Southern AZ hehe.