The City Walk games were 3rd party. Universal leased the space same as they do the carts. That being said I'm pretty sure the games have been gone since the city walk waterfront refresh.
Secondly, complaining about the games is like complaining there are to many stores, it's a fact of a theme park and it's not going to change. It's where the park makes it's profit, and without that wouldn't be open.
The parking, express, and ticket money cover most of but not all of the expenses of running a major resort. Gotta remember none of the bills are cheap: Labor (front line, support, and executive), marketing, power, water, maintenance, expansion.
It's like HHN, I would love if they would stop selling alcohol. Hollywood does a great event that is dry, and the scares are so much better because the scareactors aren't constantly in fear of getting punched by a drunk. But HHN startup (cost of paying the HHN team all year, buying the IP, design and construction) as well as the costs to run (power, staffing, OPD support) it's the alcohol and merchandise that make it profitable.