This news is a couple weeks old by now, but I thought it was an interesting step forward for those who support the games as art point of few. It seems like it's only a matter of time before there is an Oscar for in game voice acting or motion capture acting, as well as other awards for the entire gaggle of artistic mediums that come together when creating a modern video game.
I don't think that all video games are art … but the immersiveness of games, especially MMORPGs, seems to present an artistic endeavor. The synthetic worlds that are being built for modern games are incredible in their depth. I've always felt that part of what makes something art is its ability to engage and move the viewer, and there's not a lot of art out there that engages and has the ability to move more than these worlds.
It's probably been done already, but I think the idea of building a world as a work of art could be really interesting … immersing someone in a painting/sculpture rather than having him or her view it from behind a velvet rope. The possibilities of what can be done with mathematical physics modeling, artificial intelligence, as well as the actual environment of the world seem endless.