Movies and games have a lot in common: the genres are largely the same (action, horror, thriller, etc.), the quality varies enormously on a case-by-case basis, and typically the costs to produce the final products are enormous (the time, effort, and number of people involved). A major distinction, however, is that movies have long been considered to be an art form while video games remain controversial, which seems rather unfair. When movies first appeared as a media the films were just things you could see in person but recorded so they could be viewed by anyone: that is not art as we know it, just copying and pasting. It took a long time for directors to develop the tools to engage an audience. In the same way the video game industry up until now has been occupied with making games that perfect mechanics, not with engaging players and leveraging the unique aspects of video games as a media to create a truly enthralling experience. Only recently have games like that begun appearing, and they are still infrequent. Regardless, video games will soon be art just as movies are, and while there will certainly still be bad games designed to make money just as there are bad movies designed to make money, the number of video games that are art is sure to rise.
An important distinction to make is artistic and art: artistic is a style while art is a product. I will elaborate on this with an example. Fable 2 (or even Fable 3) is an artistic game: the designs are varied and just out-of-reality, the story is well crafted, and the whole universe is woven into a grand experience. However, the game is not, as I understand it, art. The experience is riddled with annoyances that take you out of the experience, like an inventory and health bar system. The character interactions are incredibly limited (compared to real life, anyways), and the combat is repetitive. The concept is great and amazing but the execution is only average, and thus it does not feel like art. It just feels artistically done.
Geometry Wars is, by contrast, an impossibly simple game with an incredibly simple idea: stay alive. You play as a shape and shoot at other shapes which chase you. There is no plot, no characters, just mechanics and graphics. However, the controls are fluid, the experience is intense, and the whole game is incredible clean: it just works. It might not be artistic (despite the pretty colors it is still just a bunch of shapes that follow your shape), but the game is art. It is refined, brings a concept to life incredibly well, and is a blast to play.
For a game to be art, like a movie, the experience must be great. Unlike a movie, however, the experience is composed of more factors, including mechanics, graphics, gameplay, etc., and not all of these and the movie factors have to be great for the experience to be incredible: games can be great with just mechanics and graphics, gameplay and plot, or any other combination of factors. This is my conclusion: games can be art, but the industry needs time to understand how to make games that are art. It is similar, but not the same, as movies. The experience is still what matters, but the formation of the experience is so much more complicated when making a game, but the possibilities are, appropriately, much greater.