As a college student, I can firmly agree that gaming is handy at times. Most of my time is taken up by homework, etc. and sometimes you only have little time to yourself to do something "fun". These short periods are not long enough to go out and hang out with friends. It's also just inconvenient for them, especially if they're in school during the week.
Finding a mix of both reading and gaming is the ultimate pass time imo. Although an excess of reading won't cause much harm, I think.
I think really really really young kids that are growing up essentially addicted to video games will probably develop without solid human to human social skills. Same can be said for most technology though.