Karaoke is all fine and dandy, but covering a song with live band backup is a different thing entirely. If you thought playing a cover song was red meat for the crowd, try throwing a classic game tune onto the set list and watch the fans go apeshit with nostalgia.
In what could be the finest piece of music ever arranged by human beings (Sorry, Mambo #5), The Minibosses brilliantly perform a medley of Mega Man 2 music. They also cover many other game instrumentals, such as Castlevania and Metroid, which you can download here.
A rotating stable of musicians make up the cover-happy phenomenon that is The OneUps. Their jams cover the entire gaming gamut, from Earthworm Jim to Final Fantasy. Take a look at their PAX '07 appearance to see exactly how much mankind can benefit when talented geeks prevail.
Not content to simply compose the most memorable songs in Final Fantasy history, Nobuo Uematsu also formed the metal thunderbeast, The Black Mages, so that they may shred his tunes in various public settings. In possibly the most epic performance ever laid to YouTube, below you'll see the Mages perform One Winged Angel (Sephiroth’s Theme) in concert with full orchestral backing.
And how could we not include our favorite faux-Arabs, Group X, performing the timeless Mario Twins. It's a Low-Fi stroke of genius, plus half the instruments are their mouths.
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