Games

People are a bit optimistic about how it could be used, it's still a bit dumb. In all likelihood it's likely to be used in asset creation since that's one of the pricier aspects of game design, automating and replacing the more grunt work stuff. Not design so much as textures, object modeling, etc., which are already easy to do via AI (and easy to train, avoiding lawsuits by keeping things in house). That'll displace "artists" although texture creation is a bit of a slog anyway.

Should people be worried about writers? Maybe, but I'm not-- at least not yet. AI can create filler, but it's story writing is abysmal. You'll still need a creative behind the curtain to build the world, subvert tropes, and so on. AI can assist but if it's better than you on writing, you really shouldn't be a writer.

To use an example from when ChatGPT became mainstream, a certain scifi serial magazine had to close submissions because they were bombarded with cheap and fast short story submissions. According to the editors, these stories were some of the worst they've ever seen. I forget the name of the magazine, but I thought it was pretty funny since I was playing with the tool and couldn't agree more.

None the less, it's probably for the best. I hate making assets, and my wife used to do translation and that's really boring and under paid. A lot of game design is incredibly boring and laying off people making those things is probably in their best interest, those jobs suck. Main downside is the business class of the industry will pocket the profits instead of reinvesting in their products or reducing prices.