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Utilizing content created by algorithms rather than human made content. Often utilizes a "seed," a relatively small string that is used to control the randomization algorithm that generates the entire world.

PROCJAM is the Procedural Generation Jam, an annual event about making things that make things.

http://www.procjam.com/

Related to the process of arranging game maps using a set of tile graphics (often call tilesets)

The graphics that make up a tile map