Hello Ricky,
1. Snapshot – You can revert back in case you took a snapshot before you upgraded the virtual machine hardware. Well this obviously not work if the VM has already been created in for example vmx-10 and you only want vmx-8….
2. Convert the VM – with VMware converter you have a possibility to specify which virtual hardware you want for the destination VM. Easy and without a risk as it’s a cloning operation which does not alter the source disks.

3. Create New VM – You can create new VM with let’s say C# client and specify for example virtual hardware version 8. Then attach the existing virtual disk to that VM. Yes it’s supported way, according to this VMware KB article.

Then there are some unsupported ways to change the virtual hardware by editing the vmx file, but I won’t list those, as it’s unsupported. For me, the VMware converter works well and it’s a safe method. The only thing you need to watch out is the network configuration which is not retained, so you have to re-configure the NIC once the VM is up and running.
The other thing is that if you chose the second way (creating new VM), just make sure that you pick the same components that were in the “old” VM. For example chose the same disk controller, same virtual NIC type etc….
The other way around. Usually it’s very easy to upgrade virtual hardware.
Thanks
Sam