Yes, video games are art.
The real question is whether they are considered "High Art":
http://en.wikipedia.org/wiki/High_culture
Which at this point in time is probably a "no".
EDIT: Looks like Scottie beat me too the High Art point :)
Currently Playing: Saints Row 2 | Battlefield 2 | Company of Heroes
Recently Beaten: Gears of War | Super Mario Galaxy | Darwinia | MGS4 | Sam and Max Ep. 4, Portal | Mirror's Edge | Uncharted | Mass Effect
Looking Forward to: Alan Wake | Splinter Cell : Conviction | The Last Guardian | Batman: Arkham Asylum | SMG2 | Mass Effect 2 |