The Federation of American Scientists releases educational game Immune Attack

That's right. Learn about immunology in this shooter.

Snap Clutch -- eye gaze interaction in MMOs

Video demo of interfacing with World of Warcraft through eye gaze tracking only. You can change to and engage in modes of locomotion, combat, object manipulation without using your hands.

The rise and fall of Atari

So he and a friend chipped in $250 a piece to start a company called Syzygy (the name given to the configuration of the sun, the earth, and the moon when they ‘re in a straight line in space)... That’s what Bushnell wanted to name it… but when he filed with the state of California, they told him the name was already taken. Bushnell liked to play Go, a Japanese game of strategy similar to chess. He thought some of the words used in the game would make a good name for a business, and company legend has it he asked the clerk at the California Secretary of State’s office to choose between Sente, Hane, and Atari.

She picked Atari.

Casting call for banned Xbox 360 commercial

The first video is the original, put up for contrast. Right-click and select Zoom Out for a smaller screen and subsequent better quality.
The hilarity properly begins with the second video, a casting call for the commercial.

Hello Kitty Online -- MMORPG

Yeah, you read that correctly. Closed beta right now.
"In addition to many of the regular features of an online game, like a virtual economy, guilds and custom avatars, Hello Kitty Online will offer players "a persistent, beautifully-designed environment where thousands of players and (non-player characters) live, explore and quest in a magical world with real and imaginary zones such as the Flower Kingdom, Tokyo, Paris, Moscow and more."

iSketch -- online multiplayer drawing game

Pictionary online.

Virtual game hires real economist

As the lead economist for EVE, my duties will include publishing economic information to the EVE-Online community. My duties will also be to coordinate research cooperation with academic institutions as the academic world has expressed quite an interest in doing research on this phenomenon (which shows how important MMOGs might become in future research into economic and human behavior).

Previous post on EVE's economy.