Well with my graphics card calling it quits I guess I can only talk about it as a movie; though, it DOES look pretty hard to play with all those effects near the rhythm line.
Plenty was set up about the game they're playing, but the rest of the world looks like a dystopia, a comment about life outside the game would've grounded things a bit more, take us in, you know?
The theme looks like a neat commentary, but I never kept up with the smash scene so I kinda' can't tell how well that's done, but it makes sense it would stagnate over the years.
You did get me to look up who falcomaster3000 was though, before I even watched it. And there didn't seem to be many parallels, yet anyway, outside of the mask; but if you were to find a way to add more earlier it might've made for a better hook for the series.
If you haven't wrote much before this, well they're common problems, just gotta watch out with an outside viewpoint!
The animation is full of energy and flow, I can't suggest anything outside of continuing to refine it. Oh, and your visual comedy was absolutely great.