Here's a very funny youtube video about video games and storytelling!
GO TO IT, you won't regret it:
I have looked around at some bibliographies and some references to find a group of essays that could be very interesting to read.
"The Work of Art in the Age of Mechanical Reproduction" Walter Benjamin
"The Culture Industry: Enlightenment as Mass Deception" Adorno
"Theory of Radio" Bertolt Brecht
"Virtual Reality: Beyond Cartesian Space" Sally Pryor an Jill Scott
"The Safe Abyss: Whats Wrong with Virtual Reality?" Steven Whittaker
"The Erotic Ontology of Cyberspace" Michael Heim
Interesting NYT article on 3D and second life, as well as a video of the new technology in action.
An intriguing article on what's next for the internet.