Netease Refutes Suda 51 Claims About Shutting Down AI Department and Halting Generative AI

Netease refutes claims made by Suda 51 that it halted generative AI use

A Netease spokesperson has told Eurogamer that statements made by Suda 51 on its generative AI policy are not correct, and that the company continues to work with the technology. The spokesperson has also pointed to an upcoming GDC talk hosted by Netease covering generative AI."The assertion that NetEase Games has closed an AI department or that we've mandated teams or studios not to use AI is not true," said a representative speaking on behalf of the publisher. Elsewhere, NetEase has offered a comment saying: "The situation described did not occur, and we have not published any related policies". Suda 51, talking to Eurogamer as part of an interview on Grasshopper Manufacture's upcoming game Romeo is a Dead Man, stated the following: "They originally had a section researching and developing AI-related stuff, but at one point they decided not to do that any more. They folded that section and told their studios to not use AI in games, to not use it at all." "I don't know, they never explained directly why," Suda continued. "If I had to assume, it was probably one or both of two things. A lot of gamers out there don't like AI and having it in their games. Another thing is issues with copyright infringement. That can be tricky to get around, and clear before making something. That was probably part of it too - it would be easier to get rid of it altogether. But, again, that's my assumption. No one told me directly." As for Grasshopper's own involvement with generative AI, Suda 51 also stated the company had not done any research into AI, and he believes there's something in the human brain that tells them something is off when they see it. Suda told Eurogamer: "At some point there may be this thing I've heard be called the "New Reality", but even if it does get to that point and it's really good and realistic, I feel humans have something in their brain that tells them something is off. So while I don't have a strict opinion either way on people using it in their own games, that's not the way we do it. That's one of the things that bring people to Grasshopper games - they can feel people's efforts themselves. It's something we're proud of.

Marvel Rivals owner Netease says heck no we didn't shut down our AI department or warn devs off it: "The situation described did not occur"

Marvel Rivals owner Netease has responded to a strange situation in which Japanese developer Goichi Suda (Suda51) suggested the company had shuttered its generative AI research department and instructed its development teams to avoid the technology. Eager to set the record straight, Netease says no, it is still very much investing in AI tech. As Eurogamer reports, Suda said, "They originally had a section researching and developing AI-related stuff, but at one point they decided not to do that any more. They folded that section and told their studios to not use AI in games, to not use it at all." It seems there was a misunderstanding. Netease says it remains pro-AI in games. A company spokesperson told Eurogamer: "The assertion that NetEase Games has closed an AI department or that we've mandated teams or studios not to use AI is not true." A separate statement to Insider Gaming simply reads: "The situation described did not occur." Moreover, Netease is set to host at least two panels explaining applications of AI in game development at this year's Game Developers Conference. A search shows that the GDC 2026 schedule has two AI-related talks from Netease employees listed - including one game AI designer, one technical manager, and one technical art manager. The first talk, set for mid-day on March 12, reads like a more conventional application of AI. "How AI Turned MMO Players into TikTok Creators," it's titled, promising an explanation of how AI video tools can be used to "extract motion and camera, swap avatars, and refilm the scene" from live-action clips or in-game footage to repackage it for short-form video content. The second talk, coming later on March 12, sounds more like the type of thing you'd expect from a company that's apparently worried about the optics of not investing in AI and inserting it into games. "We'll explore principles for successful AI integration: establishing effective human-AI collaboration workflows, building value-oriented technical services, and creating cross-domain integration strategies," the summary reads, echoing much of the chatter around purported gen AI efficiency. "Through concrete case studies, we'll demonstrate how AI asset optimization toolchains and intelligent workflow transformations delivered over $6 million in cost savings and 50% efficiency improvements." There is clear emphasis on "AI implementation opportunities in game development" and "specific techniques for leveraging AI in art production." Meanwhile, many other publishers and developers are keen to avoid any association with generative AI and the many issues - and backlashes - it brings. Even Rockstar owner Take-Two, whose CEO, Strauss Zelnick, has championed AI as a "great thing for every industry," has been quick to say "generative AI has zero part in what Rockstar Games is building" with GTA 6.

No, NetEase hasn't put a total ban on generative AI in its games

It seems that firm lines are being drawn every day when it comes to game studios and AI. Some steer very clear of the technology, while others are embracing it wholeheartedly, in as many ways as they can. Recently, when asked by Eurogamer about the spread of AI in the games industry, gaming legend Suda51 claimed that NetEase had completely banned the use of generative AI in its games. As confirmed by a NetEase spokesperson to FRVR, though, this turned out to be false. "This story isn't true - we even have a GDC talk about AI," the NetEase spokesperson said. "In game development, we've always taken an open and collaborative approach, actively following and carefully evaluating the potential of cutting-edge technologies like AI. At the moment, our team mainly uses AI as a supporting tool in specific areas, for example, in our facial modeling system, which allows multi-level parameter adjustments. Players can also use voice input for AI voice tone recognition, generating character appearances in different styles, ages, and ethnicities -- making true personalization possible." So, there actually seems to be quite a lot of AI used at NetEase for a company that has apparently banned it. If you want to hear more from Suda51 about his thoughts on the games industry, as well as some exclusive new details on his game Romeo is a Dead Man, check out our own interview with Suda-san below: