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The true reason for the change in the film's original CGI FX was due to The Walt Disney Company having threatened to sue Full Moon Entertainment due to the original design of the sky cycles resembling the lightcycles from Tron (1982), which were notably featured in advertising material, including various trailers. This is what also lead to the film's February 1993 release being postponed. Had the trailer and poster not featured the original sky cycle design, Disney would not have noticed the similarities until later on, and then file suit against Full Moon.
Peter Billingsley, who plays Nick, also took part in re-doing the film's CGI effects.
The film is well noted for its trouble getting released. The film was originally set to arrive on video in 1991 before being pushed to September of 1992 as well as February of 1993 and eventually pushed to March of 1994.
Despite the Tron controversy, the original CGI version did surface on video in International territories such as Europe and South America. And Paramount Home Video did issue screener tapes of the original version to various critics and potential video buyers before its intended February 1993 release was postponed.
Filmed back-to-back with Dollman (1991).
"Alex Manning: Oh god, I dreamed you were dead. Alex's mom: Sweetheart, I am dead."
"Alex Manning: You're the donor? Arcade: The donor... was a little boy! His mommy hit him until he went to sleep forever. But Vertigo-tronics stole his pain and I was born! Now no one can play with me ANYMORE!"