Why don't we still have any games with AI agents used as NPC characters?

Do you remember this NVIDIA AI-NPC presentation from 3 years ago? https://www.youtube.com/watch?v=5R8xZb6J3r0

Where all of that? Why do we even try getting agents to do all the work if they still cannot be reliably used as a characters in the video games? Isn't it should be the obvious first step in showing that AI agents actually work, considering a completely safe in-game environment. I am aware of many mods that tries to implement agents to already established titles such as Morrowind or Skyrim, but as I see it most of them were not successful. Yes, you can have the conversations with NPC and maybe trigger some predefined actions if you try hard enough, but these actions will not have in-game consequences and realistic emergent behavior is not happening breaking the immersion. But ok, let's say it's just moders who do not have the resources to build such a complex emergent ecosystem with glue and sticks. But we have multi-billion AAA gaming companies who are not even trying. Even though theoretically we have all the pieces in place, agentic open models such as Gemma 4 that could be run on modest hardware. I would be more than happy to see a Fallout-2-like 2D RPG where all the game-related computation is happening on CPU and GPU used only for NPC brains. This should already be fun as hell. There must be a market for it as well, considering the AI-hype train still going. I bet there are people who have been dreaming of games like this since the 80s. The other assumption is that people are already trying and it is not really working for one reason or another, then there is a huge question if the things we are building could even be called "agents" if they could not even perform a relatively simple role of NPC characters in the video game.