It certainly can if you have an ordinary CRT type RPTV. I assume that is what you have. The worse thing is to leave the same image on the TV for an extended time such as a scene or a background that doesn't change at all. Keeping the brightness and contrast down will help.
Well my TVs manual only says that static images can damage my TV. With newer game systems MS XBox in particular you really don't need to be too worried unless you are careless (leaving games paused for hours etc.) since the XBox rarely has any static images on screen. Even if you leave a menu screen up MS mandates that the publisher must go to cut scenes periodically and even when you pause a game after about 30 seconds the brightness will dim right out (MS design). Further it is rare to find many game stoday that have static borders or backgrounds.
Do be carefull of some sports games that leave scorboards floating in front of the game screen. (Sega Sports unfortunately) Although most take steps (MS Games Studios) to make sure they are not always up.
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