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Key Facts

Key PlayersNVIDIA, Unity, Epic Games

AI AdoptionAdvanced

Use CasesNPC Behavior, Procedural Generation, Anti-cheat

Top News

Xbox Cancels Copilot AI Features as New Leadership Shifts Strategy Toward Developer Tools

Microsoft is discontinuing Copilot AI features across Xbox mobile app and consoles under new CEO Asha Sharma. The decision marks a strategic pivot away from AI chatbots toward backend improvements like graphics upscaling and developer tools, as Sharma brings in CoreAI executives to overhaul Xbox leadership and address declining gaming revenue.

Technology23 sources

Xbox Cancels Copilot AI Features as New Leadership Shifts Strategy Toward Developer Tools

Technology23 sources

Gearbox boss Randy Pitchford defends AI policy after posting AI-generated image sparks backlash

Randy Pitchford posted an AI-generated selfie on social media, triggering widespread criticism from Borderlands 4 fans already suspicious about AI-written patch notes. The Gearbox boss spent hours defending the studio's no-AI policy, insisting the company doesn't use generative AI in any customer-facing work.

Entertainment3 sources

Gearbox boss Randy Pitchford defends AI policy after posting AI-generated image sparks backlash

Entertainment3 sources

Capcom calls DLSS 5 backlash positive proof that Resident Evil Requiem character design worked

Capcom producer Masato Kumazawa says the negative player reaction to Nvidia's DLSS 5 AI-altered version of Grace Ashcroft was actually positive for the studio. The backlash proved fans loved the original character design and that Grace quickly became a fan favourite in Resident Evil Requiem, which sold over 6 million units in 16 days.

Technology6 sources

Capcom calls DLSS 5 backlash positive proof that Resident Evil Requiem character design worked

Technology6 sources

Roblox Reality brings DLSS 5-like AI photorealistic visuals to user-created games

Roblox Corporation unveiled Roblox Reality, a hybrid AI system that generates photorealistic visuals for user-created games. Unlike Nvidia's DLSS 5, which runs locally on RTX graphics cards, Roblox Reality operates on cloud servers and pulls raw 3D spatial data directly from the game engine. The company aims to launch the first iteration in late 2026 or early 2027, though shares fell over 20% following earnings reports showing slowing user engagement growth.

Technology2 sources

Roblox Reality brings DLSS 5-like AI photorealistic visuals to user-created games

Technology2 sources

Warhorse Studios faces AI backlash after translator claims he was replaced to cut costs

Warhorse Studios confronted intense scrutiny during a Reddit AMA after former translator Max Hejtmanek revealed he was fired and allegedly replaced by AI. The Kingdom Come: Deliverance 2 developer insists it values human creativity and uses AI only in early production stages, while dodging direct questions about the dismissal. The studio says it's hiring human translators, but the controversy highlights growing tensions around AI replacing creative professionals in game development.

Entertainment2 sources

Warhorse Studios faces AI backlash after translator claims he was replaced to cut costs

Entertainment2 sources

Microsoft's Auto SR finally arrives on ROG Xbox Ally X, promising 30% better frame rates

After six months of waiting, Microsoft has released Auto SR for the Asus ROG Xbox Ally X through its Windows Insider program. The AI-powered upscaling technology uses the handheld's NPU to upscale game resolutions to 1440p while improving frame rates by up to 30%, currently available only in docked mode.

Technology4 sources

Microsoft's Auto SR finally arrives on ROG Xbox Ally X, promising 30% better frame rates

Technology4 sources

Microsoft CEO Satya Nadella vows to win back fans with focus on fundamentals over AI bloat

Microsoft CEO Satya Nadella acknowledged the company is losing its grip on consumers during an earnings call, pledging to win back fans across Windows 11, Xbox, Bing, and Edge. The admission comes amid growing consumer backlash over AI-heavy updates and rising competition from Linux and Apple, prompting a strategic shift toward performance improvements and serving core users.

Technology2 sources

Microsoft CEO Satya Nadella vows to win back fans with focus on fundamentals over AI bloat

Technology2 sources

S&box creator Garry Newman vows to combat AI slop flooding Garry's Mod successor

The long-awaited Garry's Mod successor s&box launched on Steam to mixed reviews as AI-generated games flooded its main page. Creator Garry Newman acknowledged the AI slop problem and committed to taking action to promote human creativity, though Facepunch Studios maintains AI can serve as a productivity tool for developers.

Technology3 sources

S&box creator Garry Newman vows to combat AI slop flooding Garry's Mod successor

Technology3 sources

EA CEO says 85% of QA work uses AI but company is hiring more people than ever before

EA CEO Andrew Wilson revealed that 85% of the publisher's quality assurance work now uses AI or machine learning algorithms. Yet the company claims it's hiring more QA people than ever, with AI handling only rudimentary tasks like system boot-ups and crash detection while humans analyze the results.

Technology2 sources

EA CEO says 85% of QA work uses AI but company is hiring more people than ever before

Technology2 sources

The Blood of Dawnwalker director says companies should use AI, but with a crucial caveat

Rebel Wolves has clarified its stance on AI in game development after concerns emerged about The Blood of Dawnwalker. Game director Konrad Tomaszkiewicz says companies should use AI as a supportive tool to help developers work more efficiently, not to replace human talent. The studio confirms no AI-generated assets appear in the final game—only early-stage voice-overs for testing dialogue before voice actors record the final versions.

Technology2 sources

The Blood of Dawnwalker director says companies should use AI, but with a crucial caveat

Technology2 sources

Neurable licenses BCI technology to flood consumer wearables with brain-scanning capabilities

Boston-based BCI startup Neurable announced it's licensing its non-invasive brain-scanning technology to consumer wearables manufacturers. The company, which raised $35 million in December, is transitioning from direct hardware partnerships to a licensing platform model that could integrate mind-reading tech into headphones, glasses, hats, and headbands across gaming, health, and productivity sectors.

Technology2 sources

Neurable licenses BCI technology to flood consumer wearables with brain-scanning capabilities

Technology2 sources

Google exec claims 90% of game studios secretly use AI despite widespread player opposition

Google Cloud's gaming director revealed that roughly nine out of 10 game developers are using AI tools in production, even as many remain reluctant to publicly admit it. Journalist Jason Schreier confirmed that almost every major studio has integrated generative AI into their workflows, highlighting a growing divide between industry practices and player sentiment toward AI-generated content.

Technology2 sources

Google exec claims 90% of game studios secretly use AI despite widespread player opposition

Technology2 sources

AI could unlock $22 billion in profits for gaming industry through cost cuts, Morgan Stanley says

Morgan Stanley analysts predict advanced AI tools could slash video game development costs by nearly half, potentially generating $22 billion in annual profits for game makers worldwide. The analysis reveals how AI automation in creating gaming environments, generating dialogue, and testing software could transform production timelines and margins across the industry.

Business2 sources

AI could unlock $22 billion in profits for gaming industry through cost cuts, Morgan Stanley says

Business2 sources

AMD prepares Multi-Frame Generation for Radeon GPUs, closing gap with Nvidia's RTX technology

AMD is preparing to launch multi-frame generation support for its Radeon graphics cards, over a year after Nvidia introduced the technology. A recent update to the FidelityFX SDK reveals new frame generation ratio options, suggesting AMD will finally match competitors in AI-driven frame generation capabilities while addressing concerns about latency performance.

Technology3 sources

AMD prepares Multi-Frame Generation for Radeon GPUs, closing gap with Nvidia's RTX technology

Technology3 sources

Playdate Maker Panic Bans Generative AI Tools After ChatGPT Code Slipped Through

Panic, creator of the Playdate handheld gaming console, has banned AI-generated art, music, and writing from its digital storefront following controversy over a Season 2 game that used ChatGPT and GitHub Copilot. The policy change makes Playdate one of the first gaming platforms to explicitly prohibit generative AI in game development, with Season 3 titles barred from using AI tools entirely.

Policy2 sources

Playdate Maker Panic Bans Generative AI Tools After ChatGPT Code Slipped Through

Policy2 sources

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