A term used when you and 1 or more of your friends are playing a first-person shooter type video game, and some or all of the players have equipped sniper rifles, therefore all the players are just hiding waiting for someone else to move.
Great, we all have sniper rifles, looks like we're gonna have another waco standoff.
A term which describes a situation usually encountered in FPS games where 1 or more players on each team have snipers and are camping. This leads to everyone but them dying and screaming at their monitors for one of them to make a move and finish the round.
John: Shit! Mike and David both have snipers and won't move.
Ryan: Looks like we got a Waco standoff, I'm going to the store.