.dm2 is the file format which is used to save Quake 2 demos. By going to the console in Quake 2 and typing

Record demoname

all of the information pertaining to whatever the player is in the vicinity of will be recorded into a .dm2 file which can be played back later using the command

map demoname

These files can also be edited by the use of a program such as KeyGrip 2, allowing home computer game users to create their own machinima movies.

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