It's mostly garbage.

Your skin colour should not be part of your identity any more than your eye colour should. Diversity, as they mean it, is a way of pushing racial identity politics, mostly for non-white people.

It encourages seeing people as members of a group, rather than as individuals. Creating permanent divisions and permanent classes of people who demand different treatment.

Games and movies should have plenty of non-white people in of course. It should hopefully vaguely match the demographics of the population in most cases. But they should never be included specifically FOR that reason.