The Game Room at Birdcage was definitely there into the 2000's... just outside the back door of REI. I'm not sure of the date they closed. Did the ice rink become the bowling alley? I don't remember an ice rink. :)
Sorry to dredge up an old thread, but I grew up in Sacto also.
The Arden Fair arcade may have been Aladdin's Castle toward the end, but early on, when it was at the end of the hallway by the movie theaters, it was called The Hideout.
I must have dropped a grand in there, a quarter at a time.