Now with an LLM I could have AD&D-like campaigns, photorealistic renders of my character and the NPCs. I could give it the text of an AD&D campaign as a DM and have it generate walking and talking NOCs.
The art of those great fantasy artists is definitely being stolen in generated images, and application of VLMs should require payment into some sort of art funding pool. But modern artists could well profit by being the intermediary between user and VLM, crafting prompts, both visual and textual, to give a consistent look and feel to a game.
The essay author is smoking crack.
But this wouldn't make sense anyway. Game companies won't foot the bill for real-time renders of your character, let alone a world of generated NPCs. If/when costs are low enough, and players accept a recurring subscription to play games, then this could happen, sure. No way in hell will artists be available in real-time to keep the generated imagery consistent.
Game artists could indeed be working in real time in MMORPGs to tweak the world, impresarios of the shared experience. Paying for live human shaped performance art is a great way to keep human creativity central to the experience.
Even when I play a game like Expedition 33 or Elden Ring, my brain (for whatever reason) makes a solid split between the cutscene versions of the characters and the gameplay version. I mean, in some games the gameplay characters is a wandering murderer, while the cutscene characters have all sorts of moral compunctions about killing the big-bad. They are clearly different dudes.