It's posts like you guys that make me glad I've desensitized my kids to fictional stuff like that over the years.
Due to lack of smiley, I'll just say good for you. Personally, I thought Freddy Kreuger, Jason, and the rest of the horror gang were a kick-butt part of childhood. Still, I would have crapped my pants if there was a bona-fide freddy kreuger pinball machine in my house as a kid. I know I would be ticked if I paid $1k+ for a pinball, only for my wife to say "Honey, the pinball is fun and all, but our little girl is too terrified to go in the gameroom now. She says she has nightmares that Freddy is gonna come out of the game and eat her."
It's called hedging your bets, good sir. Kept it G-rated at least until they are 8. Kids below that usually can't comprehend the difference between real and imaginary imagery. I remember when my bro-in-law let his kid (5-6 I think) watch the butterfly effect. The scene where the woman and baby gets blown up by dynamite - wow, that really messed that poor kid up even though nothing is shown on screen. I couldn't imagine the kids nightmares if it showed it!