You're right, yes - a 1ms pause has a cost, even in a 16ms budget.

I interpreted the author's point as "GC is now potentially viable for games", in the sense that older GCs might have pause times larger than 16ms, making them obviously inappropriate, whereas today 1ms pauses is something that can be budgeted for at least in some cases.

As you said, malloc/free also have costs, and also GC has other benefits, like bump allocation, moving things to compact memory and improve cache locality, etc. 1ms pauses means GC is worth considering even for a game, in other words.