After playing a virtual game with "ninja bunnies", Timmy wishes for a challenging game that you can't wish yourself out of. When Chester and A.J. then come unexpectedly and go into the game, Timmy realizes that they have to finish the game to leave, so he goes into the game himself. But when Vicky is coming close to a power surge, Cosmo and Wanda have to make sure the power doesn't go out, or all the data in the game will be lost...including Timmy and his friends. Then the three had to go through the stages in order to get out.
While Timmy and his godparents are playing in a virtual reality video game and are dodging thrown carrots, Cosmo is hit multiple times and loses. Timmy then realizes the enemies are just ninja bunnies and he and Wanda take off the virtual reality helmets. He is mad at Cosmo and Wanda for a bad video game and Vicky comes up to check on him. When she sees nothing that there is seemingly nothing wrong or suspicious, she tells him to keep it down since she is trying to watch her shows before she leaves. Before he goes to the bathroom, he wishes for a video game that is challenging, a game that he can't wish himself (or anybody) out of. The video game causes a power surge around the neighborhood due to the immense power used to create the game, and Timmy's best friends, Chester and A.J., immediately realize that Timmy must have gotten a new video game, so they come over to his house to play his new game. Timmy comes back and sees that his friends are playing the new video game. After they insult him while they are in the game, he goes to hit the reset button, but Wanda tells and warns him if the game is turned off while they're in there or if they lose their three lives, they'll disappear forever.
Timmy tries to wish them out of the game, but Cosmo said that he to get them out of the game was to beat the game or to take off the helmets. Timmy questions to them that they don't do anything halfway. Cosmo states in response no and that he and Wanda are two halves of a whole idiot. Soon Timmy realizes that the game is using way too much energy, and that if Vicky uses too much energy, it will turn the game off. Vicky attaching dozens of appliance plugs to a single electrical outlet which is not helping the situation, and if she blows a fuse in the house then the game will turn off with everyone still inside of it completely gone forever.
Timmy goes into the video game to find Chester and A.J. and Cosmo and Wanda try to prevent Vicky from using too much electricity. Cosmo and Wanda pull out all of Vicky's appliance's plugs and poof themselves into the TV and act out various programs to distract her, such as "I Love Wanda," a parody of "I Love Lucy", featuring Cosmo saying the famous phrase "Lucy/Wanda, you got some 'splaining to do", a weather news show, which Cosmo mistakes weather with feather, a talk show where Wanda interviews Cosmo and his Car wife, "Cosmo", a parody of Seinfeld, where Cosmo notes that the show is about nothing (At this point, Cosmo takes over for the rest of the bit), and a promo of an new album featuring Cosmo singing "The wheels of the bus" and "Bingo was his name-o". Timmy, still on level one loses a life to one of the shredder balls. Timmy is shocked and angered by this, and asks himself "What am I, four?". In another level, Chester and A.J. are climbing monkey bars across a canyon on another level when Vicky causes another power surge to make it briefly disappear. They both nearly fell into the canyon, but Chester was able to catch onto it when it reappeared. A.J. was not so fortunate, and plummeted into the canyon, losing his first of three lives. Timmy's next challenge is an underwater version of his Aunt Gertrude's house. Timmy finds a Wanda coin, and wishes he had cheeks of steel, which Aunt Gertrude the giant crab wanted to pinch. The cheeks are too hard for the crab, and she explodes into pieces, allowing Timmy to move onto the next level.
Timmy catches up with Chester and A.J in a school classroom level. They notice a mob of janitors with brooms walking below them. While fooling around, A.J. pushes Chester off a desk, causing him to lose a life. Chester nearly tries to get revenge by throwing A.J. off. Timmy stops Chester, and tries to convince his friends to end the game by taking off the helmets, but it does not work. When Cosmo runs out of ideas, Vicky realizes that all the plugs came out and plugs them back in. The power goes out, but Cosmo had the idea of powering up the video game by using a treadmill as the power supply. He is using a steak on a string suspended in front of him to help him keep his motivation up. Meanwhile, Timmy tries to stop his friends from proceeding and tries to convince them to take the helmets off, but they don't want to (A.J. questions if they disappear forever if they lose all their lives and Timmy cannot find an answer to that). They contest that there is only one level left. They go into the portal leading to the final level, with Timmy going after them.
Timmy and his friends appear in his house and he assumes they are back in the real world, much to Timmy's relief and A.J. and Chester's dismay. However Timmy realizes his helmet is still on meaning they are still in the game. This means that they are on the last level after all. Suddenly, the living room turns red and a fissure appears in the ground. The boss that comes out is a giant, Robotic Vicky. All of them lose one life after Vicky crushes them with her foot, so they are all left with one life left. Robot Vicky then tries to crush Chester and A.J. with her spike butt, but Timmy knows they will be gone forever if she succeeds, so Timmy saves Chester and A.J. from getting crushed by Robot Vicky by sacrificing his last life (with A.J. noting that, even though it was virtual, it was kind of cool to him).
Even though he was supposedly gone forever, Timmy had fortunately earned enough points for an extra life. Timmy sees a Cosmo coin, but it is being guarded by Robot Vicky, so he and his friends team up to get the coin, using objects from the living room to protect themselves from Robot Vicky's attacks. Timmy reaches the Cosmo coin which causes Cosmo to appear (as Wanda takes over at the generator). Timmy wishes for something to stop Vicky, which ends up being his parents, who come in and dismiss Robot Vicky from her babysitting duties, causing her to scream in defeat and melt into a puddle. When Timmy and his friends beat and exit the game, Vicky barges into Timmy's room and yells at Chester and A.J. to get out of the house, to which they obey while saying quick goodbyes to Timmy. Vicky wants Timmy to re-wire the house so Vicky can continue to watch her shows, but Timmy tricks into wearing the video game helmet. She ends up in the video game, and then Timmy falls on the floor with laughter as he watches Vicky painfully run into the shredder tether balls and then encounter lobster Aunt Gertrude. Cosmo and Wanda then share a kiss as the episode ends.