Blow argues software development hasn't advanced much since the early 2000s. As a game developer, I want to offer a counter point.

In the last 3 years, there have been a lot more indie games of far higher quality than we used to get. I'm thinking of the RTS space right now. The Scouring for example. We went from having nobody but Blizzard able to make something that complex to several games with outstanding performance and complexity, often with their own custom game engines that are not only working but working better than I remember wc3/sc2 working at launch.

I don't know how much of a role AI is playing in those games, but I think the performance and complexity of indie games is shooting up and we are seeing very, very small teams make things that large teams struggled with in the past. Honestly, I think indie studios are outperforming AAA in most ways besides spend and length and art budget --and yet, it's the indies who are making their own game engines these days, isn't it?

(btw, we have to also admit that many of these game engine builders look to blow for inspiration (to carmack too), and their architectures are not what you'll find at typical saas companies. Game coding is complicated in a really fun way I didn't get doing plumbing on web projects, speaking for myself)