Another factor is the fact that some form of "advanced simulator" is a boon for the military. It's cheaper to train pilots and tank crews in electronic simulators than to give them the chance to wreck an actual machine. That's why the US Military funded and supported the development of an early incarnation of the First Person Shooter. Back in the late 1970s, the US Military developed a tank simulator. According to Modern Marvels (I'd say that's reasonably reliable source), the software of the game was repurposed in 1980 to make the video game Battlezone. Flight simulators developed in parallel.
So, to delay video games of some sort (because once they get into the market, improvement is inevitable), you'd need to prevent the military from investing in it, which is very difficult.