The "db" (and the controller) is suitably retro and reminds me of a time when Atari was king, but the upper-case "F" just doesn't fit. (I know, you didn't design the font.) What I would suggest doing is making it a more ordinary gothic (sans-serif) "F" by erasing the curved parts and replacing them with straight lines (or edit the shape if you're working in vector format). Use the max width of the "G" as a measure of how long you'd want the upper cross-piece to be. That will allow the "G" to kern in neatly under the upper cross-piece. One of the deals with logos is that the fonts you use are usually just a starting point; you need to worry more about the internal consistency of the logo than about the consistency of the overall typeface. (There are no Bs, Ps, Rs or Js to balance the F off against, so make it a match for what is there instead of for what isn't.)
(I'm not a fan of the colour either, but that might change dramatically in the context of the page design.)
Yep. In that display context, I'd let the background colour of the logo get considerably lighter — just the palest hint of blue will keep it visually separated from the white in the joystick and make it fit better with the rest of the menu bar.
It matches the theme of the site, which appears to be a retro styled site. Probably just me, but when I was younger and went to game sites, a good, clean design was a big turn on for me; and the sites which looked old were turn-offs. Just my opinion though.