This is completely false. We're not living in a world anymore where CPUs do the rendering for videogames. Indie game studios use some of the same engines (Unity, Unreal) as AAA, and those engines definitely require GPUs.
That's funny, because I have no GPU on any of my machines, yet I can run games using Unity, Unreal, etc. I can even run at least some AAA games, albeit poorly.
Most people I know don't have a GPU, but most do play modern games on their computers.
Edit: I think I should clarify what I'm saying, since someone downvoted me and the only reason I can think for why that is is because of this confusion. I'm talking about dedicated GPUs here, not integrated ones. The topic of conversation was around dedicated GPUs.