New South Wales acting Superintendent Dave Evans said that such videogames make adolescents think of themselves as invincible and many times the police is left with the responsibility to save P-platers from themselves.
The warnings supports experts and victims' families' opinion that the driver age limit should be at least 18.
The suggestion is followed by revelations that 104 P-platers are losing their licences each day.
Over 2000 P-platers lost their licences for drink driving, speeding over 45km/h over the limit and other serious offences, while 1674 were caught breaking the speed limit by more than 30km/h.
German researchers also said that it is the men who tend to take more risks on the road after racing in video games unlike women.
"Video games can have a negative impact on young drivers because it increases their complacency and their indulgence in risk-taking behaviour,"quoted Supt Evans as saying.
Evans added: "In games you race, you crash and it is a matter of pressing the buttons and off you go again. In real life it doesn't work that way, you can be killed."
Many teens claimed that they understood the difference between video and real-life driving. However they admitted it could badly influence other drivers.
Dr Teresa Senserrick said young drivers should be handed P-plates at 18 and full restrictions lifted at 21.
New South Wales Roads Minister Michael Daley said the "unacceptable" level of P-plate offences might lead to compulsory driver education classes.
"We need to look at other ways to try and educate our young people to slow down. There are some driving programs in schools... but there is nothing formal," he said.
In fact, police have even called for parents to be tougher on young drivers.