Alright, first off, I don't like your condescending tone.
Should I have let him get the Anni? Maybe. Should I have also let him win in arm wrestling match and instill fake confidence and set him up to fail in the real world? Perhaps I should let him eat cake for dinner and shower in maple syrup? How about stay up past 730pm?
I don't know where you're from or what world views you have, but this isn’t a daycare.
well, first of all, he is 7, you are what? like 35?
you can also race him with your bike... and then laugh at him for being slower? There is a time for everything in life...
It is a video game, purpose is having a good time, a good time between father and son... not a competition or life lesson

if u want to teach him lessons, make sure he gets good school results, learns good value's like not bullying other children. Let him compete against others of his own age.
but competing against an adult is not a good way imo

but in the end, its your son, its your relationship with your wife and family.
if u feel its the right way, good for you. Its just not my way.
have a nice day sir