Northeast of the backyard, an area had been transformed into a recreational area for prisoners. I recognized many people I went to high school with here walking around socializing in their prisoner uniforms. There was a canal system with walkways, bridges, benches and gazebos. I'm not sure how they were prevented from escaping, but I think it was by invisible governmental force fields. Climbing up from this area, I found myself in some sort of atrium that seemed to be part of some sort of ultimate Chuck E. Cheese. I won a portable rocket at a game there, which, in tandem with an umbrella, allowed me to fly around like a superhero by holding the rocket in my right hand and my umbrella in the left. I flew out of the sky window and over a carnival where I saw many games and rides, and eventually I landed at the arcade complex.
There were four floors of arcade games, which I explored in detail. The arcade was full of people playing games, which all seemed to be college age or older, I didn't notice any kids here, or anywhere in the dream. I couldn't figure out why I had never seen or heard of any of the arcade games before, and wanted to remember some so I could look up the MAME versions when I got back. There was a Legend of Zelda that was made specifically for the arcade, and I figured that it would probably take an amazing amount of quarters to get through. On the fourth floor, a friend of mine appeared and told me that I really had to check out what was on the other side of some particular large doors.
Beyond the doors was a massive room with four stages on each side. We came in on the rightmost corner of the room. Gigantic muppets and other animatronic creatures appeared (although they seemed more real than animatronic) and began dancing and singing. I recognized Animal and Fozzie Bear, but no Chuck E. Cheese. The largest of them were about 30 feet tall. They were either singing "Everyone has AIDS" from the Team America movie, or a song that was very similar to it.