In early days, the main business of the game Industry in Taiwan was to be agencies for foreign game companies. The market size then was very small. Until companies such as the Softstar Entertainment Inc. and the Soft-world International Corp. began to provide the game software in Chinese version, the market size of Taiwan was expanding gradually. In 2002, the game industry was paid attention and subsidized by Taiwan government. The purpose of this study is to compare and analyze the difference of current business model and marketing strategies between arcade game operators and on-line game operators in Taiwan. Four companies, therefore, were chosen in this case study in representing industries of arcade and on-line games in Taiwan. There are: the Artro Corp, the International Game System, the Soft-world International Corp. and the Gamania Corporation. According to the conclusion of this study, at first, in terms of business model, the arcade game operators are focusing on exporting the machines to oversea casinos while the on-line game operators are selling their “point accounting card” on line to local customers, just like Business to Customer model in the electronic business. Secondly, in terms of marketing strategies, the arcade game operators are focusing on landing oversea market places as soon as possible while the on-line game operators are seeking to settle down the domestic market places prior to the oversea market. Due to the fact that the game Industry is one of the high barries Industry, therefore, it is required that the development of software and/or hardware need a lot of money and R&D manpower. At last, this study provides some suggestions to the government and operators concerned in order to accelerate the development in the future for the game Industry in Taiwan.