Some pictures would help to see how bad it really is.

To each there own but depending on how bad it is i would either just touch it up with paint and live with it or repair it correctly. The trim on the bortom does not appeal to me.

I work with wood a lot. I have an F-14 that suffered the type of damage you mentioned, but just on the front. What I did was to slice off about 2 inches of the front panel and put in a new piece of wood...then finished and repainted.

F-14 Cabinet repair.JPG

depends on a few things, is the game a classic? (some games are more blasphemy to mod than others). also its cond is important- it is really hard to ruin something that is all ready ruined.
i try to go conservative, but in the back of my head i know any time i break out any paint or what not i am truly ruining orignality of that machine! no matter how good of a job i do. i live with stuff i dont really like just to keep machines org at times.
also sometimes i would only mod a machine i plan on keeping for a long time- you will seldom get labor time back, and i think its best to let later owners have the ability take something the direction they want to go with out undoing your attempts.....

that said it your machine, that sits in your house, nothing wrong with makeing to pleasing to your eye.
you can sometime mod something with limited trouble to get it back to org cond.

nice clean job! looks good

Very fixable.

is the face layer of ply seperated all along the bottom edge or is it solid and just a chunk splintered out, looks a little distressed by the first B also?

Looks like it is separating. I would wood glue, clamp, wood filler (two part epoxy similar to bondo), and then sand.

That's a no brainer candidate for repairing. No reason for elaborate metal angle modifications.

For reference, the groove the bottom panel sets in for my Flash Gordon I am restoring was bashed and broken. It was all fixable with wood, glue, brads and clamps. It retains its natural appearance without metal modifications.

image-256.jpg