This is not, before you roll your eyes and start skim-reading, about to turn into a lengthy argument for the dropping of the phrase "game" or "videogame" in favour of some new alternative which better describes the industry's products. Suggestions for a new, consumer-friendly name for interactive entertainment have been doing the rounds for over a decade, and they're all doomed to fail for one simple reason - everyone likes the word "game", even if it's not terribly accurate.
Besides, the accuracy doesn't matter; the word "game" is a label for interactivity, not a pigeon-hole which must be dispensed with because of its older connotations. After all, very few films are actually created using film any more, and there are a lot of novels which aren't exactly novel - the names remain, because they are intricately linked in people's minds with the class of entertainment they represent.
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