I know a lot of people, some who have legit claims to expertise, who say video games can make people more violent,. No, it's his complete comments, see below, which especially with the others, makes it a bit loco. Obviously, nationalizing an industry isn't specifically insane, just economically and politically unwise, so chalk that up as just a bit of context

Yahoo news
Chavez, in his weekly radio-TV show "Alo Presidente," called on Venezuelan manufacturers to make "educational" toys and dolls with indigenous peoples' features to replace capitalistic counterparts like the Barbie doll that "have nothing to do with our culture."

In expanding on his dislike of western toys and games -- he already slammed Nintendo for promoting "selfishness, individualism and violence," Chavez Sunday took on the world's top selling game console, Sony's PlayStation.

"Those games they call 'PlayStation' are poison. Some games teach you to kill. They once put my face on a game, 'you've got to find Chavez to kill him.'"

The firebrand leftist president said any game that "bomb cities or just throw bombs," are sold by capitalist countries to sow violence so they can "later sell weapons."

They "promote the need for cigarettes, drugs and alcohol so they can sell them. That's capitalism, the road to hell," he added.