How to remove games from the arcade
To remove a game from your arcade, go into the Settings sub-menu and look for the "Remove Games" option. After selecting this option, the system display area normally shown in the upper left will instead show the on screen controls for the Remove Games tool.
Using the player 1 joystick to navigate, locate the game(s) to be removed. Press the upper leftmost of the action buttons to mark any game with a red X. After you have finished marking all games to be removed, press the blue Select button to confirm or the red Exit button to cancel and return to standard menu mode.
If a game was included with the arcade, then instead of being fully removed it will be hidden. To restore anything that has been hidden with this tool, go into the Settings sub-menu and select the "Reset Disabled Games" option. This will cause the arcade to restart, and after it has finished it will have restored all games and options that were removed.