This is actually a very large topic, but I'll try and give you a rough idea of what it's all about. If you look at the credits you'll see that there is usually a massive team involved, from design though to publishing, but I'll only give a quick intro into what the programming side is all about.
A PC game is, funnily enough, likely to have been written on a PC, usually in a varient of C++ with some extra tools for more specialist areas (graphics, sound etc), and occasionally they'll have to dip into some assembly code (only a few steps up from all those 1's and 0's). The PC itself will probably run Windows XP (seeing as that's what most gamers will be running) but they might run a Linux Distro or - knowing what programmers are like - ten. The PC will likely be the most powerful out there too, so that they can get the best results possible.
For a console, it's slightly different. It'll be a similar situation with the programming languages (C++ and assembly are the norm), but the PC they use will be different. The big console manufacturers sometimes provide developers with what are called "dev kits", and are simply PC's which match the specification of the console and has all the ports for memory cards, control pads and all that stuff. Again, there will probably be some extra, more specialist tools avaliable to them.
If you are serious about all this, I'll give the following advice. First, start buying Edge magazine: it's much better for info on the industry, as well as the games. I would say that the Official magazines are pretty much useless for that sort of information (and in my opinion, the Official Nintendo one is only really suitable for those under the age of three or unable to put coherent sentences together). Secondly, you are going to have to take a more critical look at the games - read up on the development process and think "hmm, I wonder how they got that idea", rather than "hey, that's cool!"
Thirdly, start learning C++. It's horrid, I know, but you'll need it. And while you're at it, install Linux, grow a beard, adopt a penguin and start ingesting copious amounts of pizza and coffee, and then get aquanted with your keyboard: you'll land up sleeping on it after spending hours pouring over source code to find the one rogue comma is preventing the game from running.
