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Player Versus Environment

Often abbreviated as PvE, Player Versus Environment gameplay involves the player fighting computer-controlled enemies rather than other players (Player Versus Player). While this technically applies to every single-player or cooperative game, the term is best known in the world of MMORPGs, where it denotes anything that isn't directly connected to Player Versus Player.

Depending on the game, these two types of gameplay can be strictly separate or can overlap.

Examples:

World of Warcraft has the open world where the two things can overlap depending on the server rules, while the instance areas are either purely PvE (dungeons, raids) or purely Player Versus Player (battlegrounds and arena).
Guild Wars has the two completely separated and its community is known for massive Flame Wars between fans of each, with PvE players calling PvP players "elitist" and PvP players claiming that PvE is too easy.
EVE Online About 90% of the things going on in Hi-sec. Also is used as an adjective for ship fits. Generally, its a bad idea to take a PVE fit to PVP. Because Eve is a PvP Wide Open Sandbox, PvE in Eve is ironically said to mean "Player vs. Everyone".
Phantasy Star Online mainly focuses on going on PvE quests with other players, including offline in the GCN and Xbox versions. Its Battle Mode is somewhat limited in comparison.
It's entirely possible to play through Star Wars: The Old Republic doing nothing but PVE alone and in groups.
The primary focus of The Lord of the Rings Online.
Champions Online has PVP options but the main gameworld is PVE.