Yes, this was a video game, targeting games consoles - so the executable statically links with pretty much everything, including stuff that would count as part of the OS on a PC. And then, if you can make sure everybody builds with the same libraries then you can be sure that everybody is running the same code. (I imagine this approach is also used for embedded development sometimes, another case where the build artefacts cover a much larger percentage of what gets run on the target than is the case with a PC.)

I will admit that even though I think it might be worth doing (and not doing it because your version control system doesn't make it easy is the worst reason for not doing it!), I'm not sure I'd consider it absolutely mandatory, certainly not for video games anyway. Most projects I've worked on haven't done this, and it's been fine, especially if you have a CI system doing the builds - and now the individual developers' systems just have to be roughly right. But it is nice to have, if you've got the right combination of personpower and institutional will to actually do it. It eliminates a whole category of possible issues straight away.

(I'd like to think that for safety critical stuff like medical or automotive this sort of approach, but done even more carefully, would be par for the course...!)