In a speech this morning at the Develop conference in Brighton, Vaizey told an audience of media and industry representatives that he is a "huge fan" of gaming. However, he admitted that Super Mario on the Wii is about all he is "capable of" playing-wise.
In the recent emergency Budget statement, chancellor George Osborne disappointed the games industry by declining to include a much called for tax credit for the sector.
Games industry trade body TIGA had requested that the government provide financial assistance - in a similar way to that already given to the UK films industry - so that British developers would not fall behind on the world market.
Various other countries, such as Canada and France, have introduced gaming tax credits which has enabled their nascent industries to become serious competitors for the UK.
Vaizey said that over the last three or four years there has been a shift in the way people view the games industry, as the sector is increasingly recognised for its importance both domestically and internationally.
The minister said that "huge progress" has been made in pushing gaming into the "wider political debate", but he also realises that the UK is "missing out" on the world stage.
"I want to make it clear that I am a committed champion of the industry, and will do all I can to support it," said Vaizey, who backed TIGA's tax credit plan while in opposition before the election.
Vaizey said that he understands how "very disappointed" the games industry was with the emergency Budget, but the case had simply not been made for the financial assistance.
The minister also claimed that indirect support was introduced in the Budget to help the gaming sector, such as new corporate tax rules and a clearing up of the intellectual protocol regulations so that developers can make more from their new properties.
"We now have to be more creative in how we help the games industry as the environment around it is changing so rapidly," he added.
Despite the Budget situation, the new coalition government has also introduced some direct support for UK gaming, such as a £6.3m commitment to create the new Centre For Digital Entertainment as a collaboration between Bournemouth and Bath Universities.
A further £2m has been made available for a University of Abertay Dundee-administered research fund for supporting new gaming IP. Smaller developers will be able to apply for the funding, while larger firms can get involved as commissioning partners.
Another fund is planned for directly supporting start-ups and smaller firms, which Vaizey claimed was a major need flagged up by the industry.
Eidos life president Ian Livingstone will also lead an independent review of how to improve the transferable skills being taught in education to help boost the games industry. The review will look at best practice around the world and then explore ways to bring that to the UK.
In the Develop audience, TIGA chief executive Richard Wilson asked Vaizey about the future of the gaming tax credit. Wilson said that TIGA has made the case for the credit and so it is up to high-profile people like Vaizey to support it within the government.
Vaizey replied: "Well, you haven't made the case [for the tax credit] because the chancellor decided not to accept it."
Vaizey declined to confirm whether the tax credit is now dead in the water, but he did say that the government is under severe pressure for funding from various parts of society, which makes it a "tough task to decide priorities".
He also urged the industry to "regroup and look carefully at its priorities", which suggests that financial assistance from the state is now unlikely.
However, Vaizey urged against a "council of despair" in the industry on the lack of a tax credit as he feels that there are other ways to support the sector.
"I don't think that just because we don't have a tax break that the industry is going to fall over. That is so wide of the mark," he said.
"I don't feel downhearted or defeated, I feel optimistic for the future."