DreamWorks SKG is parachuting out of the video arcade business, fleeing GameWorks, the company that Steven Spielberg helped found six years ago as a showcase for his passion for designing

arcade games. GameWorks struggled to become a profitable business, quickly expanding and then retrenching. Last fall, the company landed in the middle of a firestorm when Washington

politicians chided Hollywood for marketing violent entertainment to children. GameWorks responded by restricting its most violent games to those 16 and older. Sales at the 13

arcade/restaurants, including three in Southern California, increased 10% during the last six months, with revenue up $10 million, company officials said. DreamWorks has a 9% interest in the