If anything the substitute has been TV. Gaming is big, sure, but that doesn't appear to crowd out time reserved for watching media. I expect that the marathoner gamer who plays for hours daily is a comparatively smaller demographic.
I mean, the NFL, at root, is in the business of entertainment also, and it makes more than Hollywood as well all in.
But why would Hollywood care?
Which might be raised in relation to gaming as well, but I'd argue that gaming elements share much more in common with cinema, particularly in the contexts of world design, character development, backstory, and of course, CGI.
Not true. Most media conglomerates own both video game and movie production. The big players like Disney, Sony, Comcast, Universal, etc all have ownership stakes in video game companies and most TMT funds invest in both as a same bucket.
"Silicon Valley":
As more high-tech companies were established across San Jose and the Santa Clara Valley, and then north towards the Bay Area's two other major cities, San Francisco and Oakland, the term "Silicon Valley" came to have two definitions: a narrower geographic one, referring to Santa Clara County and southeastern San Mateo County, and a metonymical definition referring to high-tech businesses in the entire Bay Area.[citation needed] The name also became a global synonym for leading high-tech research and enterprises, and thus inspired similarly named locations, as well as research parks and technology centers with comparable structures all around the world.