Yes, the robotic arm joke is a reference to masturbation. A robotic arm would never get tired, so he could pleasure himself without getting tired.
"shabba dabba de" is just a nonsensical noise, meant to mimic the sound a robot might make.
Gideon is the name of the character. If you look closely, you'll see his name in front of him on the screen at 6:56.
The Edge is a reference to a professional wrestler who goes by the stage name "Edge". Not only does the video game character look a little like him, Edge often wears that same black ski cap.
So it's a joke that the game character of Gideon looks and dresses like Edge.
Finally, "zing" is just a sound people make sometimes to imply that they have made a really good insult or joke. We get the noun 'zinger' from this interjection.
"That joke was a real zinger."
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