Art is entertainment, it serves no other purpose, be it paintings from Picasso or your own photos, movies (Spielberg announces 'I created my latest masterpiece'), music from Beatles or Spice Girls, video games.
So yes, video games entertain, they are art (of course pre-modern art was never called art, it served a purpose, usually a religious one).
We had a great Nintendo exhibition in my town a while ago:
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