Hi,
I´m joining the competition with a two player fighting game made out of videos of real street fights found around the net. It´s called "Low Bitrate Fighters".

Each fighter´s video takes one half of the screen. As fighters get physically destroyed, the video quality gets digitally destroyed: with every hit taken the video quality lowers, so the quality of the video serves as life counter.
Here some new tests using ffdshow codec and quicktime graphic compression:

I´ll be using this one.
Gameplay will be as stupid and as skillful as a street fight can get: Players only have one attack button. To avoid the opponent´s hit all you can do is to hit back within half a second. The first who stops punching will get hit.
Will test this and maybe add some more rules, but the point is not really about making it fun to play. I will also experiment with overlaying videos, not sure how it will look like but I´ll keep it really simple.
Guess I will spend most of the time compressing video over and over. ¿Anybody has an idea of a practical way for doing this? ¿Anybody knows a codec that excels in detroying the immage?
EDIT:
Added some randomness, so when both players are desperately trying to hit each other there are some chances that someone will get hit. Also, if both players keep fighting without hitting each other they will be separated.
FINISHED:
-Added some more videos, would have loved to put even more, but it's too much work and the game is getting really big already.
-Inversed the control scheme: left player punches with the "0" numpad key, right player punches with the left "control" key. This way players have to physically invade each other's space.
-Fighters heal if they stop to catch their breath for some seconds.
I think the idea is funnier than the game, but I'm still happy with the experiment.
Download here:
http://gamejolt.com/freeware/games/arcade/low-bitrate-fighters/4539/Windows, 127.Mb