CPU usage is measured as the fraction of time that a microprocessor spends on tasks other than the system idle process. If the operating system has nothing for the microprocessor to do, it runs the idle process and enters a low power state if appropriate.
Games are typically bound by soft real time constraints. They attempt to perform certain tasks a finite number of times per second (such as running AI logic), and if this rate is met the game won't have anything for the microprocessor to do until the next iteration comes around.
If the constraints aren't met, and the application is not constrained by some other event, then it will be kept busy nearly 100% of the time.
If the application is constrained by a different operation (such as waiting for a GPU to finish rendering a scene), then the microprocessor won't be able to proceed until the other task finished (this is called blocking) and the OS will have it work on something else, or idle, in the meantime.