Actually, I think of "Soul Calibur" when I hear Namco, but whatever. As for the upscale arcade/restaurant idea, Dave and Busters has been filling that niche for a while. Unfortunately the food is overpriced, and the arcade consists mostly of expensive racing games.
I remember going to pizza joints as a kid. I would always spend more time at the arcade then eating pizza. I could see them pulling off a mini-arcade at other types of restaurants. Upscale restaurants though? Nah. Gaming in a restaurant is too low-brow of entertainment for those who are looking for fine dining.