Ya, my son isn't playing video games yet, and he will definitely be a reader. He usually gets 5-6 stories throughout the night and loves them. Usually 3 at bedtime, and 2 or 3 other during the evening.
That said, I don't think playing video games and being a prodigious reader are mutually exclusive.
When I was young I read a lot, played a fair amount of video games, and played a lot of sports and a lot outside. It's amazing how much time you have as a kid isn't it? I think I ended up alright (B.Sc. Physics, minor computer science, wrote software for years, then got into business analytics and now manage an analytics team for a major corp).
There is also some research indicating that people who grow up playing video games have a fundamentally different mindset than those who didn't (see
http://books.google.ca/books/about/The_kids_are_alright.html?id=WFqdNEfJP8MC&redir_esc=y and
http://books.google.ca/books?id=uxz6UU_AW3cC&printsec=frontcover&dq=got+game&hl=en&sa=X&ei=NOYdT5O4Oo-ctwfBzPSoCw&ved=0CDYQ6AEwAA#v=onepage&q=got%20game&f=false for some pop versions of the research). It essentially boils down to the mindset that all problems can be solved with enough clever work. Everything can be approached as a puzzle to be solved. Failure isn't really a problem because you can just reset the game, so they aren't afraid to take chances either. You have to play the right types of games though, and of course learn other skills in other areas.
Video games aren't necessarily bad, but if you just let your kid be raised by them you'll run into lots of issues. Same thing with TV. There has always been bad parenting, now its just easier to do.
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