Gotta be the latter. If Nintendo had managed to make piranha plants look like this in the 80s, a lot of people's childhoods would have been substantially more traumatic.
This Arcade-y Basketball Game Brings The NBA Jam Vibes
Artist Karen "Dogzilla Lives" Main is to thank for this, but a warning: if this grosses you out, her other works won't be any easier on your sleep pattern.
Dogzilla Lives [DeviantArt, via technabob]