AI if it's allowed to develop will probably just eventually destroy high end hardware period (consoles, PCs). Because it will completely change how games are rendered period and won't require polygons, textures, lighting, etc. any of that. It will just be fed a data set of enough reference photos and video that it will from that create photorealistic worlds/characters at dramatically less power overhead, so you'll have photorealistic visuals on a smartphone, even probably eventually displays (like smart TVs) built in. And people will then take that for granted. This discussion gets it:
https://www.neogaf.com/threads/after-sora-by-openai-aaa-games-by-ai-are-months-away.1667354/page-5#post-268975419
From the user side it will blur the line between what is "official" content released by actual companies, if there are AI tools that dramatically streamline the difficulty process of making games and allows a handful of people to do it (eventually just one person), you're going to have a flood of people sitting around making their own 3D version of A Link to the Past, making their own Smash Bros characters, making their own Elden Ring game, making GoldenEye 007 with photorealistic graphics and all the Bond actors, etc. etc. with visuals that are basically the same as the real version, even mimicking the physics and all that.
I think you're going to have a monstrous side market of games that look and play like official game content because of AI assistance on the development side, but it'll be created by users and hobbyists and "side hustle" content creators instead.
There's no money in Tiktok, Youtube, Instagram Reels just being confined to traditional movie studios and television production companies, obviously the money is giving it out to the general public and letting them create their own content and share it. That will happen with AI games too, you're going to have teenagers flooding the market with multiple games running on a photo-real engine every month, hoping one of them becomes a viral hit, the same way today people make videos hoping one in a million of them go viral.
