Online gaming, i.e. games played over the Internet, originally started with PC games and now includes the latest modern consoles. The first console in the arcade game world was the Sega Dreamcast. The console is now essential to modern arcade games, with the advent of Internet connectivity in consoles such as the PlayStation 2, Xbox and Gamecube; portable consoles such as the PSP that use Wi-Fi; and in mobile/cellular phones.

Online games require multi-player facility; hence, the most popular game genres include massive multiplayer online role-playing games (MMORPG), first person shooter (FPS) games, racing/driving games, strategy games, and sports titles, where more than one person can play the game.

A MMORPG is an online computer role-playing game in which a large number of players can interact with or against one another in the same game at the same time. Once a player enters the game world they can engage in a variety of activities with other players ranging from chatting with their friends or other members to teaming up in order to kill enemies or complete complex tasks or quests that are not possible solo.

A first-person shooter (FPS) game is a combat game on PC or video, characterized by the players on-screen view of the game simulating that of the character. The modern FPS games emerged during the early 1990s, the most popular being Id Software's Wolfenstein 3D and Doom. Doom defined FPS gaming to such an extent that subsequent FPS games were referred to as ""Doom clones"" for a long time.

Today, many independent developers produce arcade games designed specifically for the Internet. Such smaller web-based games, designed with Flash/Javascript/DHTML, run directly on web browsers. These games may not be as large and sophisticated as the PC and console games, and are generally quick to complete by comparison. Some, like Runescape, have expanded and can be considered on par with the bigger PC games.