There is also an interesting argument between Roger Ebert and Kellee Santiago (the co-founder and former president of Thatgamecompany) on this topic http://blogs.suntimes.com/ebert/2010/04/video_games_can_neve...
Video games are part entertainment, part engineering challenge, part craft. Just like all art forms.
I enjoy reading Ebert's film reviews, but I think with this debate he's just stirring up controversy for notoriety's sake.