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Pwnage comes from ownage or 0wnage or 0wn4g3. It commonly means "pistol ownage."
Dude, I pwn3d j00 with my deagle, bitch!
pwnage by Colin Dean May 18, 2004
Pwnage

The art of owning someone. Albert Einstien invented this when he was typing a shitty story on the computer.

"As I looked into his eyes... we went closer and closer and... I slapped her upside the face

"Pwnage!"

He accidently typed. When he was finished with his shitty novel, all the assholes if the world bought it, and soon, everyone knew and used the word "Pwnage"!
Amanda bitch-slapped Charlie in the face. Soonafter, Stan appeared from no-where and screamed

"PWNAGE!"
Pwnage by ShadowUT0625 July 16, 2009
"Pistol-Ownage" aka the most humiliating form of death on Halo 2 and CoD2, because pistols suck.
someone runs out of ammo in a gunfight, so he whips out his pistol and makes quick work of his opponent. "Haha! I pwned you! Pistol Ownage(pwnage)!"
pwnage by baradnorodh July 28, 2006

pwnage window 

When debating stuff on the interweb and you post an incorrect detail within your finely honed theory, you're leaving a pwnage window open for others to pwn you.

As such, it's an inaccuracy others can exploit.
Feck! There was I extolling Billy Dean's heterosexual virtues and he's opened a pwnage window on me by posting a twatload of Gay Elvis Porn at The Club :dry:
pwnage window by manker August 5, 2005

Pwnage by Bluetooth 

When you are standing next to somebody either in an Elevator, Checkout Lane, or Bar etc. and they answer their phone via Bluetooth and then you respond.
(In an Elevator a guy walks in)

Stranger: Hey, Whats Up?
You: Not much, just glad the days over....
*Stranger Looks at you like you an idiot*
Stranger: Yea, I will grab some milk on my way home.
You: (Mentally) Crap, he had a fucking Bluetooth and wasn't talking to me. I hope no one noticed. That was severe pwnage by Bluetooth

pwnage block 

An elusive block in which pwns in many ways such as pwnation and pwnificaton
Jimmy threw the pwnage block at Thomas.
pwnage block by Osborne Tealeaf November 14, 2007