That seems like only a temporary phenomenon. If we've got AI that can generate any games that people actually want to play then we don't need game companies at all. In the long run I don't see any company being able to build a moat around AI. It's a cat-and-mouse game at best!
Why do you think they are screaming about "the dangers of AI"? So they can regulate it and gain a moat via regulatory capture.
> Why do you think they are screaming about "the dangers of AI"?
Perhaps it's those of us who enjoy making games or are otherwise invested in producing content that are concerned about humanity being reduced to braindead consumers of the neverending LLM sludge, who scream the loudest.
Fantasy below, Star Wars above—in a galaxy far far away.
This feels like a fantasy.