Comment Re:Their Game, Their Content (Score 2) 297
You (and the +5 poster a thread or two up) misunderstand "transformative" use.
The proper analogy to video gameplay has already been decided on by the courts, and it is written plays (which, also applies to screenwriting).
All three take another work, and produce an interpretation of that work. The original playwright/screenwriter/videogame author still is the owner of the base copyright being used, and the work is classified as a Derivative Work. The performer has also contributed significant copyrightable-product, but the genesis and base of the entire (new) work still rests on the original play/screenplay/game.
Also, just because something is "transformative" doesn't absolve it of the requirements to be of "limited" domain. Using the entirety of a video game (artwork included) in your new LP video is pretty much the definition of "not limited".