Brotherly love

It usually all starts over some kind of game, be it on the computer, playing the Wii or even just running around outside.  Child #1 -- his talking is making me lose  #2 -- but I wasn't even talking to him  #1 but it is bothering me, can't concentrate, you made me miss and on and on..... #2 -- gets frustrated and hits #1, who responds by saying I am going to kill you--#2 -- Mom, he just said he was gonna kill me.  Me to #1--that is not a nice thing to say to which they respond --- I wasn't really going to kill him, just want to hurt him some, again my reply is that is not something that is nice to say about your brother and if you two can't work this out you are going to lost the privledge of whichever form of play they were participating in.  Which will stop the argument for all of 30 seconds and the cycle continues. Take the offending game away or turn it off and they are all I'm sorry and give hugs, grab a book and go off to have an imagenery adventure in their room.  Sometimes I think they actually play and act better without all the gizmo's and gadgets we have around the house.  What is it like at your house??