I don’t think they’re replacing pretend play. My kids just played Minecraft for an hour, and are now engaged in making “tables” by stacking bean bags on each other then jumping on top of them. My 5 year old has a pretend language, even.
My experiences follow yours. My nephews/nieces are obsessed with Fortnite and video games in general; they'll play it for hours until their mom or dad tells them to cut it out and go play outside, where they will proceed to pretend-play "king and princess" (there can't be dragons because "she will be too scared"), or "house" in an old barbecue box, or any number of invented games. Or they will make pretend cheese soup in toy pots and pans and go around "serving" it to everyone.
Nothing like a good cheese soup, especially if it has a dragon in it - they really add to the flavor.
Ewww , my dragon got burnt
My kids (5 and 7) spend about as much time interacting with electronics as I did at their age, it’s just iPads/YouTube and Nintendo Switch instead of broadcast TV and NES. The majority of their time is spent playing with dolls, lego, writing stories, etc. They recently turned the playroom into a “Toy Cafe” featuring slime smoothies and poppit cookies.