Klungo's Arcade is a building located on Showdown Town's seaside, particularly on the pier. Here the player can play the game that Klungo, unaided, has created: Hero Klungo Sssavesss Teh World.
Every time Banjo completes a level, Klungo rewarded the duo with Musical Notes.
- The concept art in this place was known as "Klungo's Game Emporium" and its design was very different to that finally was used. Anyway, counting both designs have an Xbox 360 power light.