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GG’s 2023 Story of the Year: AI is disrupting the gaming industry

Almost every video game studio (Web2 or otherwise) has felt the impact of the rise of generative AI tools and widespread industry layoffs that have shaken the gaming industry to its core. And just as many gamers have spoken out against the rise of cryptocurrency gaming and NFTs, they are doing the same with AI.

McKinsey predicts generative AI in 2023 as “Breakout year“At the same time, the gaming industry set a rough record. 9,000 laid off. It’s impossible to determine exactly how many of these layoffs were due (even in part) to the increased adoption of AI in game development, but the correlation remains. Some industry talent I’m worried about the future.

“We expect continued improvements in AI and machine learning to be a long-term structural tailwind for the gaming industry,” said Pitchbook analyst Eric Bellomo. decryption.

huge layoffs

Game developer Farhan Noor has been tracking layoffs in the gaming industry this year. chart This shows the largest decline by company, and also lists more than 50 game studios affected.

No one in the industry was safe this year, as companies such as Epic Games, Unity, Riot Games, Nexon, Gameloft, Electronic Arts, Amazon Games, Ubisoft, Activision Blizzard, and numerous others made cuts in 2023.

The five companies with the most layoffs based on number of employees are as follows: unity (1,165); TikTok parent company ByteDance Closed the gaming division. (1,000); Embracer Group (954), which owns several studios including Borderlands publisher Gearbox; fortnite creator epic games (830); Amazon’s gaming division (715), according to Noor’s data.

After a long layoff, Microsoft’s AI Toolkit The November announcement angered many in the gaming industry, some of whom criticized the tech giant’s recent push into AI.rude and dangerous” To writers, actors, and game developers.

“Even with the best technology in the world, you reach a certain point,” Apex Legends and God of War: Ragnarok voice actor Ben Prendergast previously said. decryption Disadvantages of generative AI. “But the person receiving the information, the audience, even if they only know it’s AI, they’re completely disconnected from any connection to other humans.”

Unsurprisingly, most of the voices skeptical or opposed to generative AI in gaming say it could potentially cost them jobs in the future.

And those fears are not unfounded. This year’s game studio Mindak fired his employees.It announced plans for generative AI while shuttering 40% of the company. rest of the world In China, generative AI models are already taking over game illustrators. human Game illustrators are all but gone.

But most studios cited other reasons for laying off employees this year. Many people have called the reduced headcount “restructuring” while others acknowledged it. overspending or “market headwinds” It became difficult to keep employees around.

“The surge in layoffs seen in 2023 is closely linked to overemployment due to COVID-19 and the resulting decline in consumer spending,” Bellomo said. decryption.

The rapid rise of generative AI

A September Bain & Company report found that generative AI is used less than 5% of the time in game development. More than 50% of the time In the next 5 to 10 years.

While many creative gaming industry players are understandably concerned about this possibility, the tech giants, blockchain game studios, and gaming industry executives who stand to benefit from generative AI continue to advocate for its use.

Last October, Google Cloud gaming executive Jack Buser described generative AI as “The path to infinite creativity“He urged game studios to utilize it. Like Microsoft, Google is positioning generative AI as a tool that can help developers in game development, rather than do their work.

“Generative AI can help those who create games – designers, developers, artists, marketers – transform the way they work and expand the range of experiences they can deliver,” Buser asserted.

Epic Games CEO Tim Sweeney It also took a more supportive stance on AI. Epic won’t ban the game On game launchers and stores just to use the technology. It’s break time Rival Steam’s ApproachThis reflects how both stores approach blockchain technology and the use of NFTs.

“We shouldn’t assume that all generative AI is terrible or invasive,” Sweeney said. said.

The Bain report found that the majority of gaming industry executives surveyed do not view generative AI primarily as a cost-cutting or workforce reduction tool. Instead, executives see this new type of AI as a way to speed up the development process and potentially increase studio output.

“2023 was a mixed era for gaming,” says Head of Strategy and Partnerships at Horizon. sam barbury I wrote it on Linkedin.

Barberie – A person who works at a cryptocurrency company that launched an NFT trading card game. Skyweaver It also develops the infrastructure underneath it. order Banner—We see AI as the hope for the gaming industry this year.

“It’s not all doom and gloom. Barberie said it has proven that AI can have a place in gaming. He added that despite the “bleak” investment climate, innovation continues to emerge this year.

Gamer backlash grows

While some tech executives and game studios have praised the use of generative AI, others have criticized it, especially outright gamers.

Last December, Magic: The Gathering developers at Wizards of the Coast announced a ban on the use of generative AI in the long-running fantasy franchise. Despite Accused of using generative AIThe studio has repeatedly emphasized that it wants work created by humans, not machines or algorithms.

But there are many other examples of gamers and voice actors denouncing the rise of generative AI in games. one voice actor urged. final A game that “rethinks” the use of text-to-speech AI voices. Gamers were also angry. Utilizing generative AI in Firmament gamesThey called this ‘plagiarism’, ‘betrayal’ and ‘very disappointing’.

And the company that operates gaming marketplace DriveThruRPG issued a statement this year saying it would not ‘primarily’ accept content written by generative AI tools.human creativity” Instead of.

Who uses AI and why

this year, Activision Blizzard, Square Enix, Roblox, Ubisoft, Xbox, NCSoft, and Nvidia are among the largest gaming-focused companies implementing generative AI. Small-scale blockchain games such as: AI Arena and land labor capitalYou are also using it.

“AI can create personalized gaming experiences,” said Josh Jones, co-founder and co-CEO of blockchain gaming Cornucopias. decryption. “In-game assets can inherently provide more utility to users – they will be interactive and engaging rather than static and boring.”

“We use AI every day,” says Wyeth Ridgway, CTO. universe Studio Random Games, Tell decryption. “Once you get started, it’s hard not to look at every problem through the lens of ‘How is AI going to make this better?’”

Ridgway, who has worked on the design and engineering of more than 100 games, including “Pirates of the Caribbean” and “The Lord of the Rings,” called generative AI “a huge net benefit for human productivity.”

The CTO explained that AI tools like ChatGPT are better for game translation than options like Google Translate because AI language learning models (LLMs) understand context much better.

“I’ve been working with translation companies for decades where we have to submit Excel sheets for translation, and it takes days to process. That whole industry, as far as I knew, suddenly disappeared,” Ridgway said.

Random Games is also using generative AI tools to iterate on the look of game assets with human concept artists. The studio is also deploying AI to check users’ profanity in chat boxes and shorten long text summaries.

Ridgway is optimistic about the role generative AI will play in shaping the future of gaming, but is also concerned that “unethical uses” may arise, making theoretical cases of children building “deep relationships” with AI-based personas. presented.

“It’s both depressing and liberating and rewarding in its effectiveness,” the CTO said of AI. “For the most part, I think AI will simply allow us to make games better.”

Editor: Andrew Hayward

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