I just went to my Marriott Rewards account to book a room night before the game. All Marriott banner units for reward certificate rooms all the way to Bedford unavailable (about an hour south, may still have reward program rooms unless I got the last). In and closer to State College rooms still available for pay (i.e. Altoona), but the prices look about double the norm, over 200 bucks for a Fairfield Inn - but there are still rooms - for now.

Not all hotels are on the main travel sites.  I would still check out the Ramada State College on Atherton street. They still had rooms a few weeks ago and very good prices (140-160). They have never appeared on the 3rd party sites.  There was also something called the Nittany Budget Inn that had availability and much better prices. you have to get creative.