While I don't believe Buddha's advice here is merely pointed at the physical domain, or a matter of income, it is helpful to look beyond Right Livelihood and at all elements of the Noble Eightfold Path together. Consider the impact of Wisdom (Right View, Right Intention), which, while being a different nature, can still relate strongly to Ethical conduct.
Your questions seem to be more concerned about how real videogames are within Buddha's principles. I don't suggest being light with it as though it is "harmless fun," when in most cases, games are created for a certain kinds of indulgence and gain - their purpose for entertainment. A video game is arguably not much of a physical matter, but overall, it is indeed an astral matter that is capable of absorbing energy from most people (and even forming addictions).
Thus it is not just entertainment, but consider what emotional energy is being entertained. Is it hate? Anger? Pride? Popular games may take on such a quality, but not all games or companies are aligned with this. For example, thatgamecompany has created positive gameplay, with games noted by many as beautiful.
The Videogame industry/market includes both its businesses and its consumers. Whether or not you are producing and selling a game as an form of business, consider that you are also accountable for playing them.
Although I would personally avoid playing such games (involving weapons, killing, etc.), there is great and simple wisdom in The Middle Way, which may suggest that if you play such games ('objects') occasionally, non-attached, perhaps the impact is insignificant, or less significant. When disinterested though, such games lose their appeal anyway, which may contrast with games that are naturally uplifting. For many other reasons, I am unconvinced that playing games is a trivial matter when devoting oneself to a spiritual/religious path.
Following the aforementioned link provided by ruben2020, there is a link to the Talaputa Sutta. A comparison can be made here with Buddha's words on actors, which show how the actor may become an agent - to the extent of becoming "intoxicated and heedless, having made others intoxicated and heedless". This illustrates laws between the being watching and the thing (or actor, game) that is entertaining:
Any beings who are not devoid of passion to begin with, who are bound
by the bond of passion, focus with even more passion on things
inspiring passion presented by an actor on stage in the midst of a
festival. Any beings who are not devoid of aversion to begin with, who
are bound by the bond of aversion, focus with even more aversion on
things inspiring aversion presented by an actor on stage in the midst
of a festival. Any beings who are not devoid of delusion to begin
with, who are bound by the bond of delusion, focus with even more
delusion on things inspiring delusion presented by an actor on stage
in the midst of a festival. Thus the actor — himself intoxicated &
heedless, having made others intoxicated & heedless — with the breakup
of the body, after death, is reborn in what is called the hell of
Entertainment itself is for the mind as a form of escape, it is simple enough to ask yourself if Buddha would advise for you to continue what you are doing, due to the level of intentions and mindset are you ascribing to it.