I don't blame the kid as much as I do the parent or grandparent in this case.Its the parents responsibility to teach their kids right from wrong. What really bothers me is were is mom and dad in all this? All you heard from is the grandmother. Does he even have a father figure in his life?
Normally I would agree but the kid had one line that killed this supposition:
"It's fun to do bad things"
Meaning he knew what he was doing was wrong but did it anyway. I think the grandmother did teach him right from wrong, he just doesn't care.
Plus, he thinks he should only get no video games for a weekend as a punishment. How about his grandmother selling the video games on eBay? Making him do extra chores for YEARS to pay it off.
Edit: After seeing the video in Predator's post these are my thoughts:
1) The apologies in the beginning are scripted and meaningless. He's just saying that to improve his image.
2) He needs some strict punishment similar to what I said above. A stay in a hospital for an evaluation is not a punishment. Set him straight, let him spend a few days in a single occupancy holding cell in the local police station followed by a strict schedule (similar to a halfway house) with his grandmother.
A good punishment for this kid would have been some time in jail. No, not a prison, but maybe a holding cell in the local precinct for a day or two so he can see what kind of criminals go in there and how they get treated, no TV, no video games, low quality food, etc. Get a small taste of what life might be like for the kid in 11 years (or fewer) without giving him the full thing.