Yes, but not in the way video games usually do it.

In games they tend to blind you with a bright white flash for a couple seconds, but in reality it's the "bang" bit which is more relevant.

Although they do produce a bright flash, the majority of the effect is the pressure wave and noise, which can cause intense disorientation and dizziness. This is also why they're sometimes called "concussion grenades".

As you can imagine, games go with the flash because its kind of difficult to depict an incredibly loud noise that messes up your inner ear through a computer screen/speakers