Nest is a competitive, 2v2 local-multiplayer video game. The characters and world are felted with wool and stop motion animated. Nest is currently in development, but it exists as an arcade cabinet (part of the Death By Audio Arcade collective that was born out of the now defunct music venue of same name in Brooklyn). The cabinet was also felted with wool, and you can read more about it at the Make: Craft blog. You can play Nest at various events and festivals around the US. Learn more about the game here.
Voyager is a game for iOS. The art in the game was made by needle felting wool then stop-motion animated. The code is written in objective-C using the cocos2d library. Voyager has been featured on IGN, Kill Screen, Touch Arcade, and more, and was a part of Maker Faire NYC 2012. The game was an official selection for the Gamercamp Showcase and the Klik! Amsterdam Animation Festival. You can learn more here and download it here.