That captures what distinguishes a game (as an artform) from other media. You could throw in some qualifiers to perhaps narrow it down (is paying your taxes a a game?) but it's not really necessary.
Although your particular example is kind of amusing, given the prominent role of the Prisoner's Dilemma in discussing elementary game theory! :P
Technically, yes: It has a goal (collect orbs) a challenge (navigate environment) and a difficulty curve (increased distortion).
But it's really a tech demo, though.