Revealing mistake: When Andy flies through the billboard from his bicycle, there is no driver in the truck the advertisement was on. You can see through the side window and mirror that no one is in the truck.
Revealing mistake: When Andy hits the pothole, - watch where the bike lands. It's almost immediately next to him. Andy pops up and says he's fine - the bike is nowhere near where it first landed.
Answer: The video game being played is Mortal Kombat: Deception. It is available for PS2, Gamecube, and XBOX. Based on the controller, I would say they are playing the Nintendo Gamecube version.
Jazetopher