SQL Design Single Instance or Multiple Instances

I have a game I have written and I have the following Databases
Shared between all the games:
Users - ASP.NET Membership database + a few extra tables to manage subscriptions
Communication - this saves the chat from multiple games and allows sharing of the data.
Now it gets complicated:
Each game runs as a web application in IIS, only two wars are active at a time.
Right now each game uses a single database separated by a field [WarInstance] that spans twelve tables.
We are about to expand the games, from two to eight.
Each database is about 20mb in size, server has 8gb ram, with a quad core processor.
Choices I see:
1. Create copies of the database one for each game
2. Create Instances for each game's specific data
Are there any other choices?
Which of the two options is the best choice?  It appears to me from an organizational point #2 looks cleaner.
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