I don't read that at all from the ad. It's just silly wordplay about jerking off; you'd see the same thing as a shitpost comment today. I think the only way to read it as mean-spirited is to project your own shame towards masturbation onto it.

Capitalism for you. The videogame market crash taught game producers at the time that they need to market sexually to young boys to keep the industry alive....and well they did that.

Oh, minor miscommunication. Game sticks in that era had to start flacod due to technological limitations. If you don't rotate it in a circle or a bit yiu are just gonna lose at Sonic or whatever.