it's even to the point where the other day WHILE we were having sex his friend got online and he picked up his headset and started talking to him. I made him stop talking but then he got back on right after

God no, this isn't normal. I'm really sorry this is happening. He is disrespecting you and he sounds horribly immature. You need to tell him explicitly and firmly that you won't put up with this anymore.

Should I just hang out and let him play games all the time?

No. You're obviously not happy like this and this isn't a healthy relationship. He sounds like an addict honestly. He needs to be spending quality time with you. Refuse to hang out with him until this stops (I would personally break up with him but if you're committed to this then you need to be more communicative and set boundaries and see if he responds at all). If he doesn't have the self-control to give you the time and attention you deserve, you shouldn't be with him. It is very obvious to anyone reading this that he cares about games more than he cares about you. You need to value yourself and get out of this shit