Well, at that point it really blurs the distinction between a 'game' (characterized by some constrained set of rules and goals) and more of an 'AI-generated experience'. Not that there's anything wrong with the latter, it's just a bit of a terminology issue.

And yeah, I expect that before the end of this century we will be able to jack into our own personal Matrix and experience pretty much any environment and narrative imaginable within the realm of human cognition.