I can't speak for all game development degrees, but at least for the one my university offers they don't have much focus on strong CS fundamentals, and offer more of a high level overview of programming, writing, animation, etc, especially focusing on combining these in existing game engines. People who graduate with these kinds of degrees would be employable as game developers, but wouldn't be strong software engineers. They could transition I'm sure, but it would take time to learn what they missed in university, and given the work hours expected of them in game development it seems free time for learning would be at a premium.