Actor Lorne Greene used to flack the dogfood Alpo on TV, saying "it's so good I feed it to my own dogs." It gained currency during the dot-com craze, and the phrase is still used most commonly in technology companies. I believe it is one of the central tenets of quality assurance (as opposed to QA's subdiscipline, testing).
"Eating your own dog food" means that you use the software you create, or play the games you make. In other businesses, you might actually eat the food you serve, watch the TV shows you make, or use the product you manufacture. This can be taken to extremes, of course, as in the Not Invented Here syndrome, where you not only eat your own dogfood, but you also won't touch anyone else's [1].
Ben Hamper, writing about life as a shoprat at General Motors in his book Rivethead, tells how anyone foolish enough to drive a foreign car into the employee parking lot would find their car keyed, tagged with spray paint, mirrors ripped off, and possibly rammed by a one-ton pickup. That is an extreme punishment for not eating your own dogfood.
Why should you eat your own dogfood? You actually get to know the product you are making. By knowing it, you may get some ideas about how to increase its goodness. In the case of games and software, problems, bugs and deficencies become apparent often only after extended use by a variety of people. Eating your own dogfood shows you believe in your own product. If you work at a brewery, a game company, or bakery, it probably works pretty well for you, if you manufacture cod liver oil, syrup of ipecac, chastity belts, or experimental aircraft. . .well, not so much.
[1] "Not Invented Here," describes a company that will use nothing developed by "outsiders." In many cases companies don't know a solution already exists. But even more often, the organization believes they can produce a superior product. Apple Computer, from System 1 through OS9 did not include many U.I. innovations (from, say, Windows) because they were not accounted for in Apple's human interface guidelines (a great document, by the way).
Apple rejected any change they did not invent...which, of course, ignores the fact that Apple cribbed most of this stuff from innovations at PARC (Palo Alto Research Center) in the first place. In the open source world, at any time, there are several groups working on different projects that all do the same thing.
Large corporations like Microsoft reject all use of open source software...because they feel the source sharing requirements are too onerous. Therefore they must come up with all these tools in house, no matter how much it costs and no matter how poorly the tool emulates what is already available for free.
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