As an experiment I just asked it to "recreate the early RPG game Pedit5 (https://en.wikipedia.org/wiki/Pedit5), but make it better, with a 1970s terminal aesthetic and use Imagen to dynamically generate relevant game artwork" and it did in fact make a playable, rogue-type RPG, but it has been stuck on "loading art" for the past minute as I try to do battle with a giant bat.
This kind of thing is going to be interesting for teaching. It will be a whole new category of assignment - "design a playable, interactive simulation of the 17th century spice trade, and explain your design choices in detail. Cite 6 relevant secondary sources" and that sort of thing. Ethan Mollick has been doing these types of experiments with LLMs for some time now and I think it's an underrated aspect of what they can be used for. I.e., no one is going to want to actually pay for or play a production version of my Gemini-made copy of Pedit5, but it opens up a new modality for student assignments, prototyping, and learning.
Doesn't do anything for the problem of AI-assisted cheating, which is still kind of a disaster for educators, but the possibilities for genuinely new types of assignments are at least now starting to come into focus.