Well, I haven't done much work for traffic, other than randomly submitting interesting games to social bookmarking sites. If you would continue to do that, and maybe even get some exposure using Facebook, MySpace or Twitter - the traffic levels could instantly skyrocket. Remember, the demographic is anyone looking to relax and play some free games... which is almost everyone. :P
We're on the first page in google for 'arcade classic games' which is a nice keyword, and the higher up the page you go, the more traffic you'll find coming from it. I've also gotten organic search traffic from various game names. The current traffic levels are nothing amazing, but for just a handful of minutes of work - they're a good indication of how easily you can profit with this niche.
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