My ds has a playstation in his room - my old ps1. He is only 6 and my dp set it up for him. I too wanted my ds to play with "proper toys" for longer. My problem with the playstation is that hours go by while you try to do "just one more level." I had to make myself stop gaming a few years ago, and I think this is partly why I am very wary of my ds starting to play.
But we play games together. So far, I can help him out on the tricky bits. And yes it is high octane visual stuff, even on an an ancient ps1. But we both enjoy it.
And it is true that he now says his other toys are boring. But we do have time out from playstation. I make a point of us doing things together, putting a spin on stuff, like we both write our ideas on paper and put them into a hat and take turns at choosing.
Having said that, what does he want from Santa? He wants a tamagotchi, a tractor, a combine harvester(we live on a farm) and a "machine to make flowers" ( he wants this so that he can give me flowers to put in my garden!!! I was quite overwhelmed.) And that is all he has asked for. Obviously he is getting a few more things, lego, books, daft wee toys....and a fishing rod with kit for some dad and son time, I'll sit and read a book.
I think you have to keep the whole computer games thing in perspective and make rules so that it does not dominate.