That's not quite right. These days Naughty Dog uses a DSL called DC built in Racket to write all the "data" in the game (everything from cut scenes to character attributes). Running DC produces data files shipped on the DVD of the game, and used by the big C++ engine that's running on the PlayStation.

Dan Leibgold gave a talk about their system at RacketCon a few years ago: https://www.youtube.com/watch?v=oSmqbnhHp1c