The problem is your thinking of this as "Religion". This has nothing to do with Religion this is showing the youth that they can have fun playing video games and yet be a Christian at the same time. Religiously this may not be "right", but Christianity is in no way about Religion.
Jesus tried to show the people you could go to heaven with love and compassion and be forgived of your sins and the Religious Pharisees didn't believe in that. It's kind of similar to this.
What i don't understand is why some people would argue. If Christians cursed out Halo as a horrible game that should never be played you'd speak out against them, but if Christians say that a games a game and you can play games and yet still be a Christian you'd still speak out against them.
These kids don't need to get Halo 3 to get into Jesus, but they need to understand that Jesus isn't trying to stop you from having fun, he wants to save you from things you aren't supposed to do from taking over you.
I hope i helped to clarify things a bit. But this is a good idea, and they shouldn't stop because it isn't the "traditional religious way" of spreading Gospel.
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