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SMGs are generally pistol caliber short barrel weapons capable of selective fire.
Machine guns are generally rifle caliber weapons capable of full auto fire.
Like Johnny said, the distinction became blurred. With the introduction of the full automatic rifle (sturmgewehr) and the intermediate cartridge guns have evolved greatly since the 29" barrel (or so) rifles of WW I. Still the predominant definition for SMG is selective fire weapon that is chambered for a pistol caliber cartridge.
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