GameWorks begins changing the rules.

THE game isn't over for GameWorks.

The long languishing arcade-eatery hybrid is instead undergoing a major renovation by Sega Entertainment USA Inc., its Glendale-based owner, which will soon expand its lineup of 18 U.S. locations.

Sega, a unit of Tokyo-based Sega Sammy Holdings Inc., has transformed four former GameWorks locations to Arena Sports Bar & Grills and has plans to transition the rest to the new concept.

The existing GameWorks have limited kitchens and large arcades that mostly appeal to the teen crowd. The aim of the new concept is to satisfy adult customers by playing up the sports bar quotient with large plasma-screen televisions--as well as attracting teens by featuring the latest video games.

So far, Sega Entertainment has invested $3.5 million to update the games and another $3.5 million to change the decor, signage and other aspects of the eateries. The result: new games that have enhanced interactivity with a revamped menu of dinner entrees, such as ribs and steak, instead of just kids' finger food.

Before the remodels, Clint Manny, a senior vice president at Sega Entertainment, said the focus was on special occasions. Now, there are regulars who come almost every, week to watch football and plunk down an average of $18 to $20 per visit.

"It broadened the appeal, more so than bringing an entirely different audience," said Manny. "What we really started to see is more repeat business."

At the redone locations in Schaumburg, Ill., Columbus, Ohio, Miami, and Fort Lauderdale, Fla., food and beverage sales have jumped 20 percent since their renovation. Locations yet to be fully remodeled include local GameWorks in Long Beach and Ontario, and others in Tempe, Ariz., Tampa, Fla., Las Vegas, Minneapolis and Newport, Ky.

Sega also has two new Arena locations in the works, with plans to roll out four to six additional units annually. The units range from 18,000 square feet to 40,000 square feet.

When the company was started in Seattle eight years ago, director Steven Spielberg played a large role in its development and DreamWorks SKG was a key investor. But GameWorks suffered because sophisticated video game consoles kept players on their couches, not in brick-and-mortar arcades. DreamWorks pulled out about five years ago.

GameWorks filed tot Chapter 11 protection last year. After the filing, GameWorks renegotiated leases to get lower rates and set out to recreate the chain. Sega Entertainment also bought out partner Universal Studios for just under $10 million.

Staff reporter Rachel Brown can be reached at [phone], ext. 224, or by e-mail at [e-mail].