Procedural generation has been around since the dawn of computer games: Rogue, one of the earliest games, randomly generates a dungeon each time you enter it.

Procedural generation has been around since the dawn of computer games: Rogue, one of the earliest games, randomly generates a dungeon each time you enter it. Despite that, procedural generation is still quite rare in shipping games outside of a few niche genres. I think the biggest problem is one of control. A huge part of the process of making and shipping a game is balancing it and testing it to ensure the play experience never goes off the rails. Even relatively simple procedural generation can make that very difficult. Imagine playing a Zelda-like game where it turns out that 0.0001% of the time, the item you need to make progress is stuck behind a wall where the player can't reach it. Worse, they won't discover this until many hours into the game. That kind of stuff keeps game designers and producers up at night. They would rather a less varied, hand-authored gameplay experience, if the result is one that they have more control over and understand better. Bolting an LLM onto your game for NPC dialog sounds really cool until a popular Twitch streamer is playing your game for an audience of millions and some random NPC spouts a racist slur. What I do think will be very common is game designers using LLMs offline to generate dialog and other assets, and then after the designer has vetted them, putting them into the game as fixed authored content. That kind of procedural generation is used all the time and has been for decades.