I'll be honest - I feel like this could use a lot of work, BUT I must say I find it very endearing. It reminds me a lot of the kind of stuff I used to make way back in the day (albeit better than my old stuff), and I also feel like there is a TON of potential going on here.
I enjoyed the writing, for the most part. Some things felt like in-jokes that I didn't really get (like the lines at the beginning about importing from the colour universe), but other things I thought were very well done, like the twist ending about the arcade. I think this could use a few more one-liners here and there, plus some more subversions-of-expectation, like what you did with the twist.
The title card was a nice touch, but it has a long way to go as far as quality is concerned, in my opinion. It needs to be more interesting to look at, especially in terms of texture. If you want my recommendation, I'd say take a look at some of the title cards from the episodes of the old show Ed, Edd, and Eddy. They were absolutely brilliant, and I think it's the kind of thing you're trying to emulate here. Study them closely, but continue to imbue your own style, and I think you'll go far with it.
The art style is actually sort of nice, I like the not-so-smooth lines you're putting to use, but again, I think it needs some work. For one thing, the lip-syncing is lazy. I encourage you to look up some lip-syncing animation tutorials to try to get a feel for how you could take it from looking mediocre to looking really good (individual mouth shapes for each phoneme, things like that).
The character design is nice enough, I wouldn't change it too much personally, aside from making sure that you make the animations for them as smooth as possible.
I like the sprite work.
Last thing I take issue with here is the credits in your description. I'm assuming InkNimations is "Matt", although I could be wrong it may be "Scratch", regardless, the list "x by me, y by me, z by me" is superfluous and borderline annoying. It's been done a million times before, and at best it comes off as somewhat narcissistic. If you absolutely MUST list off all the things you did for the piece, do it in the form of "x, y, and z by me", otherwise, just use the Newgrounds credit system, like you did anyway.
Overall, I actually liked this. I think y'all did really well, and I encourage you to continue. Just make sure you put as much effort into it as possible to keep the quality as high as you can, and I think you can really go places with this. Good luck, much love, and I hope to see more from you in the future! :)
Rounded to 3 stars for judgement.