These are what we call the 'YMMV items.' Things that some people find in this work. We call them 'your mileage might vary' because not everyone sees these things in the same way. This starts discussions in the trope lists, a thing we don't want. Please use the discussion page if you'd like to discuss any of these items.
YMMV: The Wizard
Critical Research Failure: When the tournament announcer says one level, and the game screen says another (earlier) level, something is wrong. Someone like The Angry Video Game Nerd noticing this would make it a run-of-the-mill goof. When Roger Ebert (who was no fan of video games and admitted he didn't get past the second level of a game shown in the movie) notices the screwup, it's this. In his review with Gene Siskel, he even called himself a dummy when it came to video games when pointing out the error.
The game referred to as "F-1 Dream" (a top down racing game by Capcom which uses a joystick and buttons) is actually Taito's Top Speednote Known as "Full Throttle" in Japan, a third person driving game which uses a steering wheel and at least a gas pedal. It continues to be referred to this way in a later appearance in one scene at one of the arcades in Reno.
Designated Villain: The villain of this movie is literally the finder of lost children. The protagonists think he's sick because he gets paid for it. Putnam is a Jerkass, but the movie (particularly the boys' father) treats him much worse than he actually is.