Not an art form exactly, but more of a medium for it to travel through. Obviously games like Okami, and Half Life are gonna be considered art, but there's just too much crap in it for it to travel through, precisely why I don't tend to view modern cinema as an art form anymore, though films like What Dreams May Come, or S1M0NE should be considered art forms.
I have Dead Space for the PS3, and I absolutely love it. The only part where the shadows bend like that are in that one part of the game, at the every beginning, you'll never see that again (well, at least, I didn't). But I think that the PS3 and 360 have their advantages when it comes to each and every game.
MGSFan92's comments