This is indeed from the PSX video game. I know this because this guy I used to know who ran a video game store put this in his PSX demo machine and left it on for weeks. Basically, this loops endlessly if you just leave the machine alone, and it was kind of funny the reactions he'd get from it. I don't know how he stood this continually looping in his head, but the effect was great.
According to drunken word-of-mouth, Ooze for the Genesis was Sega's worst selling game ever. The lead designer from that went on to break that personal record with a game that sold even worse: Dukes of Hazzard.
Since we were drunk and I can't verify the facts, treat that information like you would any Wiki entry written by a random yahoo...and quote it in every conversation as if it were fact!