Yes and manufacturing an Xbox for every single household, boxing it and shipping it to them, and then having it sit unused for 90% of the time, has a much bigger carbon cost than manufacturing a fraction of the number of Xboxes, shipping them all in bulk to the same data center, and then having them run almost 24/7 and be shared amongst everyone.
And the same thing about optimizing gaming hardware is true for AI. The new NPUs in the surface laptops can run AI models on 30W of power that my 300W GPU from 2 years ago cannot.