If the kids can't tell the difference between reality and virtual reality then they don't need to be playing those games. Their parents should pay more attention to their kids and some games are rated by age group because your suppose to be at least a certain age to play that game. They shouldn't let their kids play the games that they are not old enough for.
Society has decided to embrace violent video games, which as a result are very profitable. These games are written for adults, rather than children and the ratings system warns of any violent content. In a modern world, the role of protecting young people should lie with responsible parents who know their kids best and take an active interest in their leisure time, discouraging or barring them from unsuitable activities. In this case, there is not enough justification for governments to intervene in people's leisure time.