A term generally used with combat games such as Tribes or SOCOM, or RPGs, in which players sit in one place for a while, waiting for enemies to come towards them. This form of game play strategy is usually frowned upon as it makes for a dull game. However, it is often good strategy for snipers to camp.
Camping out near a Spawn Point in order to attack other players as soon as they spawn is considered very bad online etiquette.