To try to put a positive spin on it..

It enables smaller teams to put out better quality products

Imagine you're an artist that wants to create a video game but you suck at development. You could leverage AI to get good enough code and have amazing art

On the other side someone who invested their entire skill tree in development can have amazing code and passable art

The more I think about it the more it seems this AI revolution will hurt big companies the most. Most people have no hope of competing with a AAA game studio because they don't have the capital. Maybe this levels the playing field?

I am an artist. I have friends who like to code. I could leverage talking to my friends and saying "hey anyone wanna fool around and make some games". I could get Unreal and one of the 800 game templates available on their store for prices ranging from $0 to a few hundred bucks and start plopping my art in there and fiddling around. There's a bazillion art assets on there for the programmer with no art skills, too. And there's a section on the Unreal forums for people to say "hey I have this set of skills, who wants to make a game with me?".

Or we could all just generate a bunch of completely unmaintanable code or some uncopyrightable art, sounds great.

Undertale Exists.

Baba is You Exists.

Nethack Exists (and similar games).

Dwarf Fortress Exists.

Mountains of Indie Horror games made of Unity Store assets exist.

Coal, LLC exists.

Cookie Clicker Exists.

Balatro Exists.