None of their examples seem close to game-like, but I assume the implication here is that since they can generate SWFs with some interactivity, being able to generate a functioning game is not that far off. Assuming the training set is full of robust SWF games (harvested from original Newgrounds and Kongregate, I assume?) that does make some amount of sense. I'm curious to see what kind of novelty is possible though at that level of complexity.
Maybe I don’t understand the purpose of this fully, what format do models typically generate for animation? I am not familiar with SWF files, and google says its a defunct format.
SWF is really a complex, versatile executable format geared towards interactive media. It can contain program code, bitmap and vector graphics with animations, sounds, videos and probably a few other things I'm not aware of.