Are all physical parts of a computer called software?

No. Physical parts of a computer are called Hardware.They are hard and you can touch them.

There are a lot of things that are called software though, like Word processing, bugeting, presentation, photo editing, 3D rendering, and animation programes. Even Video Games are software.

Software is instructions for the computer, held as a binary code within the machine. You cannot see it or touch it, you only see it's effects. This is why it is called 'soft'. It forms an important part of a computer because it cannot function without it and is 'wares' in as much as you can buy, sell and trade it, as if it were physical.