In 1985, British band Dire Straits released the first music video made with computer graphics. In 2010, Dutch electronica artist released a music video made entirely in a game.
DJ Hero 2 publisher Activision claim that this is the first video game made entirely of video game footage. Surely, there must be other music videos made entirely from video games, but this is a music vid made in a real game and not simply an homage.
Tiësto, who says he's currently enjoying playing himself in DJ Hero 2, wrote the tune "Speed Rail" for the game.
"The music video idea came together after I asked Activision to cut together some footage of my character in the game to play on the large video screens I use on tour," says the DJ and producer. "The fan reaction has been amazing, so I decided to go a step further and make it the official 'Speed Rail' music video."
Tiësto played a 90 minute set at the 2004 Olympic Games, making him the first DJ to ever play at the Olympics.
Update: According to the folks behind Rock Band, over 20 music videos have been made using Rock Band games. Check out this 2009 Rolling Stone piece about The Jellybricks making a video using Rock Band.