For some reason, we get a lot of questions on web cams for Emachine. Type EMachine in the search bar at the top right to see those questions.
First, the specs say the webcam is an option, not on every model. If it "seems to have stopped working," I assume you're sure there is a web cam behind that little window at the top. If you aren't sure, check that out.
If you know there's a camera there, I'd replace the driver. You may have to contact their support to find out what driver to download for your computer. There are six listed at the emachine download link below.
http://support.gateway.com/us/en/emac/product/default.aspx?tab=1&modelId=1257