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The slang term pwn (not pown, as many people unfamiliar with the term may use) as used by the Internet gaming culture, means to defeat an opponent in a video-game in a manner so harshly it is (otherwise) indescribable in words. In this context, to be pwned can be defined as "to be defeated," with the strong connotation of also having been "made a fool of." It is generally used for "friendly taunting" of a player's in-game enemies, and gently "rubbing in" any victories, no matter how fleeting. Most gamers hold the view that to "own" someone is to defeat them well, but to "pwn" them is to hand them a decisive defeat in which one clearly triumphed, and thus, the word "pwn" is seen as the next step above "own". The term has become ubiquitous in Internet circles and now it is often used outside of gaming contexts. For example "We pwned them hardcore in that basketball game," or "that Spartan_Vice is such a n00b, he is constantly getting pwned." Its progressive form is "pwning." An example: "I was pwning like crazy!" Its noun form is "pwnage" (or "pwnge"). To make it more intense, some people use "pwntage," although the popularity of this term has changed over time. An example: "Did you see that flame war? PWNGE!" "zors" may also be added to create a humorous portmanteau of the word, e.g. pwnzors (also spelled xors or x0rz). Another variation that stems from pwn, is pwnai or pwnai'd, just like pwnage or pwnzors; pwnai is just a variation used to accentuate the base word of pwn, "that kid just got pwnai'd".
The likely beginning of the meme is from the hacker scene on EFnet IRC circa 1994. The use of the word "own" in terms of victory over another predates its use in the gaming subculture. This accounts for the pre-existing proliferation of the word, which may then have been morphed into pwn through any of the following possible means:
* The term could have simply been derived from a common misspelling, with no significant event proliferating its use [1][2]. Instead, it is assumed that it simply began to spread as a result of fast typing, due to the proximity of the P and O keys on most modern keyboard layouts, and the tendency of gamers and net users to create and expand internet memes.