I don't know anything about video games, but at our NWBA conferences, we often have real blacksmith competitions. In the past we've had:
"threading the needle" where one tapers one end of a bar and punches the other, then threads the taper through the hole. Three-heat limit plus time limit. Most length through wins.
contest to see who can make the biggest diameter spoon blank from standard stock
"Ironwood Derby" was like the Boyscouts Pinewood Derby, but with steel instead of pinewood, and a five pound limit instead of a five ounce limit.
This coming April will be the hammer making contest (already in progress - will be judged at the conference) and there's been word of a tong-making contest on-site.