I know quite a few games where the AI cheats. And it is in such a way that you just want to quit playing, and for some of them, I have. These aren't arcade games but maybe it will bring up some ideas.
1. Command & Conquer: It was a known fact that you can't place buildings wherever you wanted. You can't put a building down on certain tiles like mountains, BUT the CPU could and would!
2. HOMM and other RTS/TBS: Any strategery game with Fog of War, the CPU didn't really respect that it wasn't supposed to know where you are. In all the HOMM games (on all difficulties) there is a distinct pattern of how the CPU players would operate. The CPU didn't necessarily know where your units were but it ALWAYS knew where your castles were. Even in HOMM V it was especially annoying because the CPU would build rush up to level 3 units and then bee-line to the closest castle. I did some testing and found some definate patterns, some of them are like this:
- On Easy, CPU would go after other CPU players before going for Human players. Or there would be a period of game time before it went after you. And it always would go straight for your castle, even if you could tell that it was well hidden by FoW.
- On Medium it would wait a shorter period before doing that.
- On Hard it would go after you right away and only attack other CPU if it was "in the way."
However, if you did something like use a money cheat at the beginning of the game, the CPU wouldn't come after you. Most of the time the CPU players do not "explore" the landscape to find other castles or other things and this was very annoying.
No I remember it now. Any Hockey game. Some notable examples would be any NHL up to NHL06 (the last one I played) where you can score goals up to 5-6 in the first period, and the CPU would replace their goalie. Then the backup goalie you could get another 15-25 goals on depending on which version of the game. Then magically, the goalie becomes a god and it is impossible to score on them again! Seems kinda lame. I remember it was impossible to score 40 goals on a team in NHL 2003 (which is notoriously easy) but scoring 35 was every game. Go figure.