damn,...glad I ain't that teensy-

anyone wanna give a brief explanation of what's going on here?

It's a white blood cell (neutrophil) chasing a bacterium via chemotaxis.
Neutrophils are phagocytes, so one of the ways they neutralize foreign objects in the body is by engulfing them.

and here is a video of a neutrophil gobbling up fungal cell like they were power pellets:
here

You phagocyte you. I think that white blood cell is racist.

Some game company is gonna pick this up, and make the next-generation PacMan

A game company already is. The game is called "Spore" and will be out somewhat shortly. Google it for more info =).