Could Have Been Better
I almost turned it off immediately however I figured I can not give a proper review with out watching it all so I watched it and started laughing half way through. Besides the sprites and music the episode in general sucks. I mean I suppose you do it on purpose, but you do it in such a way it wasn't funny to me. And if you made it purposely not to be funny in my opinion you lose the audience because there is no reason to watch it.
However, you made a come back with the music in the middle and playing the controllers like a key board. Then the part after the game with being hurt and tired and taking out the trash. But the rest was just horrible to watch.
I have that game and have beaten it and it is nothing like the arcade game besides the story for the most part. You can not play it with two players co-op in story mode, rather just you have to wait your turn. (But then again this not a real review for the game anyway I have to remind my self.) I also did not get the joke about killing the first dragon unless you meant whole thing about capturing the girl...
All in all I think you did it this way on purpose and I am sure you can do a much better job, I just hope you will... I should not have to wait half way through the movie before I have a smile on my face that last the rest of the show.