Art is something that is defined differently for each person. It is a subjective and opinion based term. Technically, everything is art, but that is such a broad definition that the word might as well not exist.

Many people debate the difference between craft and art, and an often mutual agreement is that art is meant to evoke or express something, while craft is made for utility. There are a few inherent problems with that though.

One, something can be labeled with one of these terms by the creator's intent AND the user's intent separately. A spoon might be a craft for someone mass-producing them, but when used to create a display piece for a table, it may be art. An artist could carefully create an intricately shaped and personalized spoon, and the buyer could use it to eat cereal.

Two, there is such a thing as the art of the craft. The subtleties and personal distinctions a craftsman makes to ply their trade is as much of an art form as painting. A good cook is an artist, even when working at a normal restaurant.

Three, something can be both craft and art at the same time, defined as both by the same person. There's no reason that the man with the intricately crafted spoon can't take time to reflect and ponder over the spoon in his hand while he eats his cereal. For that matter, there's no reason someone can't appreciate the curves and design, the different levels of plating on a regular spoon while eating cereal.

I don't know that I could give my definition of art, it's more of how I'm looking at anything at any given moment. If something is intended to elicit emotional responses or thoughtfulness then it is probably art. Even if it isn't intended to do so, it can still be art, but it is then defined by how it is used/viewed.

Yes, video games are a medium. It is precisely because they are a medium that individual games can be art. That's like saying music isn't art, it's a medium, but an individual song or performance can be art.

In that sense, video games can definitely be art. Interactive art also is inherently more engaging, so video games can really create amazing personal reactions. Just my two cents.