Culture Secretary Matt Hancock spoke as kids get hooked on new “survival shooter” craze Fortnite.
The online game pits 100 players against each other in a fight to the death.
Experts fear young gamers are locking themselves away in their bedrooms and missing out on real-life experiences.
Mr Hancock, MP for West Suffolk, said: "Too much screen time could have a damaging impact on our children's lives.
RISK: Culture Secretary Matt Hancock warns addictive video games could damage childrens lives
“Too much screen time could have a damaging impact on our children's lives”
Matt Hancock – MP for West Suffolk
"Whether it's social media or video games, children should enjoy them safely and as part of a lifestyle that includes exercise and socialising in the real world.
"Were looking at what more could be done in this area alongside game publishers, developers and other agencies to promote safety and support parents.
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Free-to-play Fortnite has been downloaded more than 40million times since July.
Anne Longfield, the childrens commissioner, says it is “irresponsibly addictive”.
Epic Games, the developer behind Fortnite, has been contacted for a comment.