There is no doubt that the video game industry has exploded in the last few years, to the point where a video game (Halo 2) outsold one of the years most popular movies (Spiderman) on its opening day. Machinima represents a unique spin-off of the video game movement- the creation (or re-creation) of movies in a video game aesthetic.
This genre lacks the interactivity of video games, but makes up for that with the narrative and creativity present in movies. Movie examples include a recreation of “A Few Good Men” (renamed “A Few Good G-Men”) and totally original content. The movement has gotten to a point where well-known directors will announce online premiers of their works.
Machinima.com In Their Own Words
“Machinima.com is the premiere online entertainment network showing original videos from your favorite video games. Watch thousands of trailers, gameplay, montages, music videos and original machinima series and movies created in World of Warcraft, Halo, Sims 2, GTA, Battlefield, Counterstrike and many more games. Access all of these videos in our entertainment game channels as well as learn how to make your own machinima videos by collaborating with others via our forums and accessing great articles and tutorials in our Machinima 101 channel.”
Why Machinima.com It Might Be A Killer
The popularity of video games is undeniable, and any spin-off that has a solid following (there are thousands of series, channels, and videos on the site, and just check out their Alexa ranking) cannot be ignored. What is really interesting about Machinima is that it is open to everyone as both a director and as a viewer, (unlike video games) and what has sprung forth is a truly organic, user-created force.
Some Questions About Machinima.com
How long before this becomes commercialized? 
