n.b.: Like a few others here, I am a real live game developer.
A real 4-year CS degree will get real attention in the hiring stack, no matter what school it came from. Lots of schools also offer a certificate, secondary major, master's degree, or something along those lines for students specifically interested in game development. That's where your students should go.
Honestly, whenever a resume comes across my desk from Full Sail, it looks really impressive. In fact, they all look equally impressive, and read like the resume of someone with 10 years of industry experience, as opposed to just a 2-year associates degree. They claim that the applicant knows every popular programming language and API. They go on to say that the applicant "knows" really broad and impossibly intricate and difficult topics such as AI, game engines, and optimization.
Occasionally, I would bite on one of these Full Sail resumes that happened to have some additional prior education or something else that the others didn't, and I would let one of these applicants move on to the next step of the interview process. Part of that step was a self assessment (rate yourself 1-5 in these ~40 areas), and another part was an open book written exam (write a simple game in pseudocode, solve this game scoring problem in any language, design an API for this common subsystem). Comparing the fluffed up resume and the self assessment to the actual written answers showed such a disconnect that it was laughably bad. Every time. Out of 5 or 6 Full Sail graduates who took that written test, the best one was just plain bad, without the laughing part.
Now compare those results to the other applicants who had CS degrees from a wide range of schools. We got the occasional laughably bad applicant there too, but on the whole they were much better than the Full Sail kids.
Every other developer I've talked to about Full Sail has told me similar tales. I can't say much about DigiPen though; I didn't get many of their resumes.
"Mr. Watson, come here, I want you." -- Alexander Graham Bell