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Re: Steam Games that work well on an arcade cabinet. You might try Mercenary Kings, which is currently on Steam Early Access (it's in public beta basically). It's a Metal Slug/Mega Man style game where you also collect minerals to craft new guns.
The first coin-operated video arcade game, Galaxy Game, was launched in September 1971 by Bill Pitts and Hugh Tuck. However, it was beaten to the commercial market by Computer Space, launched two months later by Nolan Bushnell and Ted Dabney. In November 1972 Bushnell launched PONG for his Atari company.