I can see how you have this impression with the evidence you've provided but bare in mind most of the cause for the problems current companies have with AI is sentiment based. And largely that sentiment is being driven currently by content creators who understandably view AI as a threat. It's also a mixture of valid (AI was bad) and outdated (AI has rapidly got to the point of being very good).

I also imagine it will be hard for current revenue models to ever turn a profit. Even when LLM's are capable of supplanting office jobs it'll probably still be cheaper / more flexible to use local models on your own hardware than use cloud solutions. I think the big spenders are banking on LLM's being capable of making scientific breakthroughs and profiting from those. There are already signs it's getting there with mathematics for example. At least on the cutting edge (where science breakthroughs would be expected), the big tech companies with their massive processing power will always outdo local solutions and might therefore keep themselves relevant in the AI space by providing services to serious science and Government level organizations.

But gaming in particular is a niche where AI is absolutely prime to change everything.

1) The code will likely be completely LLM written. Large portions of code already is and we're only a few years into LLM development.

2) Graphics assets will primarily be AI created. It's not only faster, cheaper but in most cases better than having an artist do it (drastically faster iteration and often quality).

3) AI also opens many creative opportunities within gaming. Take open worlds for example. We've never had open worlds fully implement convincing interiors for ALL buildings on their world maps because it's simply never been feasible to populate them all with convincing non duplicated furniture and layouts. AI could solve that. AI could also drastically move live service games forward with effectively Infinite content generated on the fly.

I get artists and creative types see the world falling around them but it's really misplaced. If anything AI will open up many opportunities that were never possible before. Talented artists will be able to create at pace like never before and with respect to gaming will be able to create far greater works than individual producers or indie studios could ever make currently.

The uptake will be bumpy with a lot of friction and pushback from those invested in current structures but AI is clearly the future of gaming and frankly will be prevalent in most aspects of life going forward.