Most have been, and are being, snapped up by other companies. Microsoft's XBox division may not be allowed to sell games in China, but Microsoft Corp is still making money there.
And then what about the truly independent games that do tell anti-CCP stories. What if the CCP demands that Microsoft and Sony not allow those games on their platform globally if they want to remain in China. Suddenly even independence is no protection. The CCP has taken down Github because of it hosting a single repo the CCP did not like, so this is hardly a stretch of the imagination for an industry that is run on walled gardens.
[1] https://news.ycombinator.com/item?id=29984784 [2] https://en.wikipedia.org/wiki/Tencent#Foreign_gaming_investm... [3] https://www.theatlantic.com/culture/archive/2021/09/how-holl... [4] https://pen.org/report/made-in-hollywood-censored-by-beijing... [5] https://www.indiewire.com/2020/01/sony-tarantino-edit-hollyw... [6] https://deadline.com/video/judd-apatow-hollywood-censorship-...
I'd like to imagine their influence will wane, but China has been excellent at getting long term influence with a lot of dollars and euros.