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AI absolutely cannot develop a video game. It is still a high risk creative task and costs for development and artists will not change significantly, even if modern AIs increased their abilities significantly.

Perhaps we would be able to synthesize some text, voice and imaging. Also AI can support coding.

While AI can probably do a snake game (that perhaps runs/compiles) or attempt to more or less recreate well known codebases like that of Quake (which certainly does not compile), it can only help if the developer does the main work, that is disecting problems into smaller ones until some of them can be automated away. That can improve productivity a bit and certainly could improve developer training. If companies were so inclined to invest in their workforce...



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