But the point of a game is to be fun. If the question is "why do we still need game studios" then the AI creating something that can boot and look reasonable is not actually answering the key question.
The answer would be no, obviously not.
The question is whether AI enables the general public to build fun games with no prior experience and with a fraction of the previous effort.
What I said is that some of the successful and therefore likely fun games made with AI are projects already started like late last year.
Considering that it still takes months to build a good product, these capability improvements are diffusing relatively slowly.
It is imaginable that models available in early 2027 can allow individuals or small teams to produce games of AAA scope, taking care of the technical aspects.
You still wouldn't expect to see a finished product until later that year, unless the AI developed something resembling taste and creativity, which today still needs to be injected by us. Not to mention stronger capabilities for evaluating visual work, motion, and physics.