No, these subway ads aren't from an alternate reality at all. They're from history. And yes, that does appear to be a child laying in a pool of his own blood, while a man walks over to make sure he's really dead.
I live in New York City. Everyday I ride the subway to work; most people here do. I haven't owned a car in 10 years. I live in the densest large city in America, one full of massive skyscrapers, immense culture and people of every race, culture and creed.
Despite video games being played constantly on the train — there's always someone playing on an iPhone, DS or PSP — game ads on the train are oddly rare.