Maybe. But multiplayer games exist. And people have a very high standard for what population a game must have for it to be worth playing. People will consolidate into singular pre-made titles, compromising on their desires like they do now, in order to have many other humans to play with.

Maybe AI can be convincing NPCs eventually, but people will want to play games with their friends. They'll find out eventually if another character is an NPC or human, and they will care.

Even singleplayer games will be subject to this, to a degree. People enjoy playing what their friends play - they like having the same experiences, they like having something in common to discuss, they like the shared experience that brings a sense of community to the fans of a single title or series.

Sure, people could make any game they desire, but it will be isolating. You're underselling the social desires and needs we all have. Maybe we'll end up with something similar to Garry's Mod and Roblox: connected gaming hubs where people can load up any number of experiences - but still being able to include their friends somehow. I think that is much more likely than the concept of a person sitting in the corner of a room with their VR headset, wilting away in a world of their own creation, having lost all connections that would otherwise surround them. Humans naturally fight against that. We'll experience things we're not familiar with, as long as we're experiencing them with other people.