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

Netease Denies Halting Generative AI Use After Suda 51 Claims

Netease has issued a strong rebuttal to statements made by renowned Japanese developer Goichi Suda, better known as Suda 51, regarding the company's stance on generative AI in game development. Speaking with Eurogamer during an interview about Grasshopper Manufacture's upcoming title Romeo is a Dead Man, Suda 51 claimed that Netease had completely shut down its AI department and instructed its studios to avoid the technology entirely1

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. The Marvel Rivals owner quickly moved to correct the record, stating unequivocally that no such ban on generative AI exists.

"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 company spokesperson told Eurogamer1

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. A separate statement to Insider Gaming was even more direct: "The situation described did not occur, and we have not published any related policies"2

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What Suda 51 Originally Said About AI Technology for Game Development

During his conversation with Eurogamer, Suda 51 had stated: "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"1

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. He speculated that the decision might have stemmed from gamer dislike of AI in games or concerns about copyright infringement, though he acknowledged these were assumptions rather than direct information from Netease1

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For his part, Suda 51 also explained that Grasshopper Manufacture has not conducted research into generative AI-related issues, believing that humans can instinctively detect when AI has been used in creative work. "That's one of the things that bring people to Grasshopper games - they can feel people's efforts themselves," he told Eurogamer1

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Netease Doubles Down on AI in Game Development at GDC

Far from retreating from AI technology, Netease is preparing to showcase its AI integration strategies at the Game Developers Conference in 2026. The company has scheduled at least two presentations focused on AI applications in game development2

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. One GDC talk, titled "How AI Turned MMO Players into TikTok Creators," will demonstrate how AI video tools can extract motion and camera data, swap avatars, and refilm scenes from in-game footage for short-form content2

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The second presentation promises to explore AI as a supporting tool through concrete case studies, claiming that "AI asset optimization toolchains and intelligent workflow transformations delivered over $6 million in cost savings and 50% efficiency improvements"2

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. The talk will cover establishing human-AI collaboration workflows and creating cross-domain integration strategies for game studios.

How Netease Actually Uses AI Technology

A Netease spokesperson speaking to FRVR provided specific examples of the company's current AI implementations, contradicting any notion of a ban on generative AI. "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," the spokesperson explained3

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. The company currently uses AI primarily in its facial modeling system, which enables multi-level parameter adjustments for character appearances across different styles, ages, and ethnicities3

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. Players can even use voice input for AI voice tone recognition to generate personalized character designs.

This misunderstanding highlights the broader divide within the gaming industry over AI adoption. While some game studios actively avoid association with generative AI due to player backlash and ethical concerns, others like Netease continue investing heavily in the technology. The situation matters because it reflects the ongoing tension between efficiency gains promised by AI and legitimate concerns about creative authenticity and copyright infringement that resonate with both developers and players alike.