Video games have become the most important aspect of entertainment for children and the way how they spend their free time. Video games aren’t a privilege that children have after they do their chores anymore. They are a part of children’s everyday life. They can be played on gaming consoles, on computers, tablets, and smartphones. Almost 90% of children in Croatia play some kind of video game. This paper will focus on the reasons for the popularity of video games among children. Negative influences on children’s behavior, health, and psychophysical development will be studied. The positive side of video games will also be explored and how they can contribute to the development of children’s skills and help them acquire knowledge. The paper will explain how the positive impact of video games can be encouraged and how to reduce the negative ones.