Adventure and role-playing games typically portray the Middle East in fantasy or quasi-historical manner, exploiting 'Orientalist' imagery, whereas action games and especially first-person shooters present the Middle East in a contemporary and decidedly conflictual framework, schematizing Arabs and Muslims as enemies. The latter exhibit strong cultural bias on a variety of levels and particularly demonstrate Reichmuth and Werning's concept of 'neglected media'. The reason for this is closely connected to the question of stereotyping and schematization in video games per se, and lies in the linkage between production and consumption. Since video games are usually produced with their consumer base in mind, they tend to incorporate and reflect the general imaginations of the Middle East prevalent among the western public, as well as the audience's expectations of particular genres.
via digitalislam.eu
Muslims now face a question whether the video games available to play on these consoles are halal or haram. As a Muslim, this question must be asked because we are to assess the permissibility of some thing before we can sell, purchase and utilize it.
Generally video games are without a doubt haram. There are many aspects to this issue which lead to it being forbidden.