Nothing wrong with gaming-specific degree...

as long as the program is sufficiently rigorous and employers can take it seriously. In other words, as long as it is not an online degree, the college has a decent reputation, and there are plenty of professors and courses (indicating how serious the university is), then you should go for it. Just watch out for those "skeleton" programs. Sometimes a college tries to attract you with a glamorous major, but then it turns out that most of the courses aren't offered on a regular basis, and there are just a handful of professors in the field.

I don't think this is like the locomotive industry at all. Locomotives obviously became a shrinking industry while gaming will continue to grow. Moreover, if you just know one programming language, that can still be enough to get you a job. That's how I just got a job. Moreover, once you have 5 years of experience, your degree becomes much less relevant and employers care a lot more about your practical experience. In the gaming industry, that should be pretty good if it involves software development.

I personally had a lot of trouble getting a job despite having a MS in Electrical Engineering with a good GPA. That is because 50% of your education is down to practical experience. While your GPA is important, your job interview usually has little to do with the theoretical (math and science) stuff you studied in college, even if you are good at theory. They are primarily concerned with projects and work experience. Therefore your degree choice probably won't make or break you, but your GPA and practical experience can. By the way, making video games should be excellent practical experience if you actually completed your project, and if you actually pulled your weight in a group project.