What are the advantages to using System 246 then something like Segas Model 3 or Model 4?
The biggest advantage is cost. A Model 4 machine will cost $10,000+ whereas the System 246 arcade unit system costs only $3,000 or so. The graphical difference between the two is noticeable, but not worth that much money. Another advantage is that due to the low cost developers are more likely to get System 246 games into more arcades which then results in more visibility for future Playstation 2 games.