1. Liternally, it is a soft, foam-rubber bat, produced by Nerf(c), a subsidiary of Hasbro(C) Inc. Notoriously better at wounding the victim's pride than causing actual injury.
2. Based on def. 1 above, "Nerf Bat" has come to refer to the implement that a game developer wields when reducing the effectiveness of a class in a computer game, usually an MMORPG. This process is also known as "Nerfing." See NERF for more info.
2. This class was almost fun until they beat it to death with the nerf bat!
2: Why? Couldn’t catch wood?
1: Nope … I was sporting a Nerf bat.
Nerfbat came about because Nerf creates harmless versions of harmful devices (swords, guns, etc).
When an MMORPG developer gives something the nerfbat, they often drastically reduce the effectiveness of said item.
see also: nerf