Nolan Bushnell during his days at atari took a very anti-violence stance, effectively no violence against humans.... Basically I think he's referring to an obsession with the lowest common denominator of selling based on violence particularly things like grand theft auto, which seriously the only reason people buy it is so they can pretend in a game to be a criminal
though it's worth noting what he says is wrong with video games the wii is addressing

He's only the guy who began digital electronic gaming as a business, that's all. (arcades) Paving the way for the soon-to-follow videogame and computer sectors to become businesses instead of hobbyist endeavors. The milkshake that brought all the international boys to the yard.

Steve Jobs worked for his company once, ya know. And his ol' pal Steve Wozniak, who created Breakout, brought digital gaming elements (the magic of Atari) to computers as they began personal computers with the Apple II in 1977 further revolutionizing technology's reach in the household.

Yeah he has no say whatsoever.

Plus he left Atari before the 70's ended so that Atari that crashed the industry wasn't even under his watch. Blame Warner Communications now Time Warner for that mishap.

Plus if you ever ate at a cartoony rodent themed pizzeria, you have him to thank for that as well.

John Lucas

Taking it back to the roots. Someone still remembers what it's all about.

John Lucas 

He just strikes as a the bitter old man who's seen the whole world pass him by.