No, it's not a game, it's a geographical locater social media application.
This way you can see if your friends are out on the town, at home or in the little cafe you happen to be passing. Businesses communities can utilize it too seeing where people are at conventions or events.
Say you check in at a restaurant and really like the calamari appetizer, you can "leave a tip" about that restaurant for your friends, recommending that dish. Same goes for stores if you've had a good or bad service experience and what's a "must see" at that convention.
Or maybe you're checked in at the grocery store and your mom, who happens to be on Foursquare, needs you to get something, boom, she knows you're there and can make sure you get those eggs she needs.

It's really meant to be used with smart phones, but can be used with regular computers too, it's just more difficult to plan ahead to where you're going.
Video tutorials- CNN Tech Team and Howcast
To find friends (because this really only works well with lots of people participating) you can link to your Google account, Facebook or Twitter.

Many businesses will also leave "tips" which are discounts or deals for Foursquare users who check in at their location. (Good marketing!)
Some people think that posting where you are all the time is crossing the personal-information-on-the-internet line. I don't think so. I think that if it becomes as popular as Twitter (which also has a locater option), then it could really be a valuable resource of recommendations and a way to keep up with friends in a more convenient way.
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