A video game babe is a female character in a videogame specifically created for visual (and sexual) appeal to a directed audience of male videogamers.
Whether you like to admit it or not gaming is a male dominated hobby/pastime (although female gamers are slowly being acknowledged). And what is the easiest way to attract young men in their teens to early twenties? Sex of course :). In the early days of crap graphics male and female attributes were exaggerated to make it clear to the gamer that the woman NPC you were talking to actually was a woman! Nowadays with the advances in graphics men in games are less frequently depicted as Arnold Schwartzenegger's body double, but women are still big boobed & slim waisted for the pure reason that it helps to sell more games to the pervy, sex starved male masses.
It is common on most gaming forums to find posts titled "which -Insert any popular game series here- girl is hottest?" with multiple pages devoted to discussing each characters "finer points". There are also mountains of suggestive or downright pornographic fan-art or hentai spread throughout the internet, featuring women from almost any game you care to mention (including furries).
- Ms. Pac-Man
- Samus Aran
- Lara Croft
- Princess Zelda
- Princess Peach
- Any female character from the Final Fantasy series
- Any female character from the Soul Calibur series
- Any female character from the Dead or Alive series
- Any female character from the Resident Evil series
- Any female character from the Street Fighter series