Now just to preface if you didn't know 'isekai' is a genre, kind of, of storytelling that basically means 'main character travelled from the real world to a fictional one'. This can in the grand scheme of things mean Alice in Wonderland, Tron, The Neverending Story and so on. In japan however there has been a massive surge in light novels and web novels getting turned into anime and manga based on the idea.
Often its just a silly power fantasy, sometimes its a more interesting case of 'you have knowledge of things like steam power, electricity and medicine this fantasy world doesnt' that ends up popular because of the visual dichotomy but for the most part its real people -almost always hit by a truck when crossing the road, maybe one day the truck drivers dark origin will be revealed- going to worlds with rpg mechanics behaving in 'real life'.
Thinking on it its surprising how much more uncommon this kind of thing is in videogames compared to the 1990s'. It often does lead to cringe stories but its as popular in japanese media as battle royale is here and while its often seen as shitty harem power trips written by people with an apparent grudge on the world the popularity is undeniable. I honestly cannot remember the last time there was an anime season without an isekai manga or light novel adaptation hastily shat out to cash in on whats the battle royale tier fad in young adult media over there.
So why do you think they barely touched on it in videogames? in terms of current gen there is Digimon World: Next Order that uses the trope in a monster rancher kind of way and a bunch of hastily shat out hard game flips, mechanics, animations and all for Sword Art online by bamco but beyond that its the usual games japan has been outputting -albeit in improving quality in recent years- for the last two console generations.
Bare in mind i don't what more of them personally, it just seems terribly strange to see the notion heavily explored in one media and not the other when it is such a huge storytelling fad over there.
Why do you think studios havent tried to cash in on the popularity of things like overlord or log horizon?