AI Revolution in Japanese Game Development: Over Half of Companies Embrace the Technology

Over half of Japanese game companies are using AI in development, states report from Tokyo Games Show organiser

Over half of Japanese game companies are using AI in development, according to the country's Computer Entertainment Supplier's Association (CESA) that runs the Tokyo Games Show. The claim is based on responses from 54 Japanese game companies in a preview of the 2025 CESA Video Game Industry Report (as reported by The Nikkei). The survey sample is taken from CESA's member companies, which include the likes of Capcom, Konami, FromSoftware, Square Enix and Sega, as well as smaller indie studios. The report preview stated 51 percent of companies are using AI, with the most common use being generating visual assets and character images, as well as story and text generation, followed by programming support. Further, 32 percent of companies are using AI to develop their own game engines. The report will be released in full in early December, so specifically cited uses of AI remain under wraps. However, some Japanese companies have been open about their use of AI. Nintendo, notably absent from the CESA member list, has taken a stance against AI. Last year, Shigeru Miyamoto stated the company would "rather go in a different direction" as part of its pursuit of originality.

CESA: 51% of Japanese game firms use AI in development

A report from Japan's Computer Entertainment Supplier's Association (CESA) indicates more than half of surveyed Japanese game companies are using artificial intelligence in development. The claim is based on responses from 54 companies for a preview of an upcoming report. The preview, reported by The Nikkei, is from the 2025 CESA Video Game Industry Report, which is scheduled for a full release in early December. The survey sample was drawn from CESA's member companies, a list that includes major publishers such as Capcom, Konami, FromSoftware, Square Enix, and Sega, as well as smaller independent studios. CESA is the organizing body behind the annual Tokyo Games Show. According to the preview data, 51 percent of the responding companies confirmed they are using AI. The most common applications cited were for the generation of visual assets and character images. Other primary uses included story and text generation, followed by programming support. The survey also found that 32 percent of the companies are using AI to develop their own proprietary game engines. Several Japanese companies have been open about their engagement with AI. In 2024, Square Enix CEO Takashi Kiryu stated the company would be "aggressive in applying AI." Subsequently, developers for the company's shooter, *Foamstars*, admitted they had "dabbled" with the technology during the game's production. Other publishers have also explored AI integration. In 2023, the publication Automaton reported that *Professor Layton* studio Level-5 used the AI tool Stable Diffusion. Earlier this year, Capcom was known to be experimenting with generative AI. Sega also maintains an established in-house AI team to work with the technology. By contrast, Nintendo has publicly taken a different stance and is notably absent from the CESA member list. In a statement made last year, company executive Shigeru Miyamoto declared that Nintendo would "rather go in a different direction." He linked this decision to the company's fundamental pursuit of originality in its creative work. The subject of AI was also a recurring theme at the recent Gamescom industry event. There, the technology was described by some independent studios as an invaluable tool for their development processes, indicating a wider trend within the global industry.

Over 50% of Japanese developers now using generative AI in game development

We've heard for a while that AI was going to start creeping its way into our media, and now it seems it's here to stay. As per a report from Japan's Computer Entertainment Supplier's Association (CESA), 51% of Japanese game companies are now using generative AI in some way in game development. According to the CESA report (thanks, Automaton), the most common use for AI is in image generation, creating visual assets for characters and more. This was followed by story and text generation, with programming support making up the rest of the AI usage. 32% of the game companies that CESA surveyed for the report are apparently looking to AI for it to assist in the creation of an in-house game engine. CESA's membership includes brands like Sega and Capcom, which were surveyed as part of this report. While this might seem all doom and gloom, there are still large Japanese companies avoiding AI for now, seeing where the technology will go.