What AI provides to gaming and media goes far beyond just procedurally generating a landscape. What AI can do is much closer to the holodeck, where the user specifies what they want to play and the AI generates everything, the story, characters, rules, landscape and all the rest. There is no longer a need for a game creator. For some genres this essentially already works. ChatGPT can generate stories, can generate puzzles and puzzle dependency graphs, it can generate images, there is AI to segment those images, generate depth maps, etc. That's basically all the bits and pieces you need to create a classic point&click adventure from scratch, completely by AI (this is what StableDiffusion can produce in 20min without any user tweaking). The thing missing is having all those AI systems integrate with each other, but people are already working on that too. If you leave away the graphics, you can already play simple text adventures right now completely in ChatGPT.
The thing I am most curious about is how this will change media consumption in general. A large part of classical media is the shared social experience, people don't watch movies just for the movie itself, but because friends and family are going to watch the same movie. With AI they now have the tools to generate custom content at home, tweaked for them personally. Furthermore that content will be dynamic. With AI you can explore locations and characters that aren't part of the main plot. You can change the story on the fly. So it's not just that AI is making the movie/game/etc., AI is the thing you use to consume the media with. There no longer a need for a finished .mp4 file falling out the other end, it will all be made up on the fly by AI.