As for it's effects on the videogame industry?
I can't imagine it will actually change much about the videogame industry, even with war games unless your suggesting the government of said time bans all talk of war.
People don't like war because people are violent. I like war games and i'm about as nonviolent a person as you can get. People like violent games because they're fun!
Hell, I play Aerobiz Supersonic. This isn't because I have a great fascination for being an Airline CEO or an Airline CEO's life is particularly interesting to me. I play it because it's a fun game.
As long as violent games have the same control mechanism... they'll still be considered fun.
Maybe they'll get rid of the blood and useless crap like that... but otherwise.
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