I made this costume for a 2011 Halloween party and everyone loved it! It took about six hours to make and cost less than $100.
The claw machine costume is made out of a large cardboard box as the frame and then wood trim purchased from a home store. Construction paper, poster board and bulletin board trim was used to give the outside some color. Battery-operated lights were then adhered to the frame to give it a light-up effect.
I used cellophane wrap to act as the glass and then dropped stuffed animals that I had throughout my childhood into the costume. I did purchase the hat online, which was a bear cap and then painted my nose black to look like a stuffed animal. You cannot tell in the photo buy I wore all black and then pinned additional stuffed animals to my outfit.
The claw was made out of aluminum foil and a telephone cord.
The letting was made using a Cricut machine while the handle was just a plastic cover I found for a curling iron. I am sure you could find other items within your home that resembles a joy stick.
Make sure you keep a large hole in the back so that you are able to enter and exit the costume easily.
This is a great costume. The only downside is that once the party is over, you have this massive costume that sits in storage!