Now that we have things like achievements and games that go beyond the relationship between gamer and game and include the whole system, which one is it? Are we still an entertainment industry?

edit: sorry I didn't know it was spam to bump a thread.

I thnks its fairly obvious entertainment. Acheivments are their to further your enjoyment(entertainment) of a game by giving you a feeling of accoplishment. What do you even mean by application? Like its a program? Maybe more clarification in the op will get more respones.

I'd still call it entertainment. Achievements and trophies just enhance the experience by giving you something to work towards. And when you get them, you feel like you've accomplished something, which only makes the whole thing more entertaining.

I ask the question because I'm seeing this trend of gaming going over to the technology territory. It has been entertainment so far, but isn't it possible that it could be restated as applications from the technology industry now that technology companies are sharing real space(Microsoft and Apple).

You need to tell us what you mean by application. I am still not understanding what you mean.

well of course its an application... games are software, entertainment software to be specific.

Entertainmet obviosly.

Its both 

Its an application that creates entrainment 

we are doing stuff with the software that creates our amusement 

hence interactive entertainment 

OK so it's both, but entertainment primarily don't we agree?