Let's take a kid's point of view for a while. You are playing video games for a while because your parents are at a party. You are playing and all of a sudden, “CREAK” your parents step into the house. They see you playing video games and turn it off. Do you mind? If you don't then you don't understand the fun of video games. Another reason this is bad is because they are actually good for your brain depending on the video games. You have to figure out strategies to win. Also, you get a better reaction time. “Reaction time?” you may ask. Yes, reaction time. This is because if you don't react fast enough you will be killed.
The ability to multitask is also another factor. Say you are in a game where you have to command ranks of troops to defeat the enemy. You have to keep track of all the troops And the enemy. Say, squadrons of troops attack your base while your strike team is off on a raid. Then what do you do? Nothing. You are already dead. So the ability to foresee this and to be prepared for it is another important way to improve your thinking.
Then again, some video games are actually designed to help improve your brain power. They are cleverly created in a way that without minding the questions asked. This is a very smart way to learn because children tend to not pay attention when they are bored and the only reason why they do so is usually because they are being paid in money or given some means of reward for good grades. If the family turns to be in a sticky situation and can no longer afford to give this child his rewards, then the child will no longer motivated to do his/her homework. With the games, it is always rewarding to do the learning.