[gameprogrammer] LUA and gameplay programming

Hi, I'm a student studying games programming in Australia, as its half way through our last year the local games companies have just started pitching themselves to us. A few of them have said that they use LUA for all or most of the gameplay programming. Is that a new trend, or has it been around for a while? I can see the advantages of using a scripting language for gameplay, with no recompile times, and the possibility of not even having to restart the game to see the effects of changes. Does anybody know how widespread the use of scripting languages are? 
Thanks in advance,
  Dominic McDonnell

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