This is a clip from an un-released Sega CD game titled “Penn & Teller’s Smoke and Mirrors”. The game was a mix of prank mini-games and a 2-scroller. Of the main game though, there was an “impossible” difficulty in which Lou Reed appear and kills you with laser eyes. After he does this he explains that,
“This is the impossible level boys. Impossible doesn’t mean ‘very difficult’. ‘very difficult’ is winning the Nobel Prize, ‘impossible’ is eating the Sun.”
As far as videogame jokes are concerned, this is probably one of the funniest.
Also, I plan on getting my hands on a copy and winning the world record for highest score in “Desert Bus”, a mini-game in which you repeatedly do an 8 hour drive between Tuscon, AZ and Las Vegas, NV and back again. For more information, check the Wiki.