All perfect praise be to Allah, The Lord of The Worlds, and may His peace and blessings be upon our Prophet Muhammad and upon all of his family and companions.
In principle, video games are lawful entertainment means as Sharia don't prohibit playing or having fun, since the Prophet (PBUH) used to say to Aisha (May Allah be pleased with her) during weddings (What means): "O 'Aisha! Haven't you got any amusement (during the marriage ceremony) as the Ansar like amusement?" [Related by Al-Bukhary/pp. 5162].
However, many of the entertainment methods such as video games involve some restrictions that render them unlawful and affect the behavior of both individual and society at the same level as follows:
1. Severe addiction of video games especially for those who used to play similar games will cause them several health and psychological damages, mental exhaustion, inattention of useful accomplishments as well as daily obligations.
2. Some of video games include matters against the teachings of Sharia such as the games that request the player to raise other religions' logo, the manifestation of wining as if it was a religion's victory over another and the distortion of Islam and Muslims Image as lately been noticed in some video games that encourage others to kill Muslims. In addition, some of malicious producers take advantage of being in charge of games' production in order to spread their own vision and culture.
3. The encouragement on gambling and betting which are mostly based on chance and luck.
4. Shooting private parts and being indulged into prohibited acts.
5. Musical effects.
Finally, video games are permissible if they didn't involve the above deviations and were means of lawful entertainment that help the individual to be productive and a hard worker. And Allah Knows Best.