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Key Facts

Key PlayersNVIDIA, Unity, Epic Games

AI AdoptionAdvanced

Use CasesNPC Behavior, Procedural Generation, Anti-cheat

Top News

Owlcat Games confirms generative AI use in The Expanse: Osiris Reborn despite player backlash

Owlcat Games has confirmed it's using generative AI tools during development of The Expanse: Osiris Reborn, though the studio insists all final in-game assets will be 100 percent human-made. PR manager Katharina Popp says AI is used only for prototyping, placeholders, and vision coordination—not for writing or voice acting. The announcement has reignited debate about AI's role in game development as players express skepticism about the distinction.

Entertainment4 sources

Owlcat Games confirms generative AI use in The Expanse: Osiris Reborn despite player backlash

Entertainment4 sources

Disney's $1 billion AI investment and metaverse plans hit major roadblocks in new CEO's first week

New Disney CEO Josh D'Amaro faces twin crises as OpenAI shuts down Sora just months after a $1 billion collaboration was announced, while Epic Games cuts 1,000 jobs amid questions about their $1.5 billion metaverse partnership. The setbacks highlight risks in Disney's technology investments and raise concerns about the company's strategic direction in AI and gaming.

Business2 sources

Disney's $1 billion AI investment and metaverse plans hit major roadblocks in new CEO's first week

Business2 sources

Valve writer Erik Wolpaw reveals small team testing AI tools for real-time NPC reactions

Valve writer Erik Wolpaw disclosed that a small group at the studio has been experimenting with AI tools for game writing, specifically focusing on real-time character reactions. While he's not worried about AI replacing creative writing, Wolpaw sees potential in using the technology to enable NPCs to respond dynamically to player actions in ways that weren't previously possible.

Technology4 sources

Valve writer Erik Wolpaw reveals small team testing AI tools for real-time NPC reactions

Technology4 sources

Nvidia's DLSS 5 AI tool sparks fierce backlash over beauty filter effects on game characters

Nvidia unveiled DLSS 5, an AI-powered neural rendering tool that promises photorealistic game graphics. But the announcement triggered fierce criticism from gamers and developers who say it applies beauty filter effects to characters and undermines artistic intent. The controversy highlights tensions over AI's role in creative industries.

Technology16 sources

Nvidia's DLSS 5 AI tool sparks fierce backlash over beauty filter effects on game characters

Technology16 sources

Sony confirms AI frame generation for PlayStation as PSSR upscaling gets 100 microseconds faster

Mark Cerny reveals that machine learning-based frame generation will arrive on PlayStation platforms, though not in 2025. Sony's updated PSSR AI upscaling technology is now 100 microseconds faster than the original, co-developed with AMD through Project Amethyst. The enhanced upscaler delivers improved image stability and clarity across PS5 Pro titles.

Technology4 sources

Sony confirms AI frame generation for PlayStation as PSSR upscaling gets 100 microseconds faster

Technology4 sources

Capcom promises no AI-generated assets in games but will use AI to boost development efficiency

Capcom has clarified its AI stance following backlash over Nvidia's DLSS 5 in Resident Evil Requiem. The company told investors it won't implement AI-generated assets into game content but will actively use AI tools behind the scenes to improve efficiency and productivity across graphics, sound, and programming departments.

Technology8 sources

Capcom promises no AI-generated assets in games but will use AI to boost development efficiency

Technology8 sources

Ex-Blizzard Boss Mike Ybarra Says AI Will Be in Every Video Game, Tells Devs to 'Man Up'

Former Blizzard president Mike Ybarra sparked backlash after telling Crimson Desert developer Pearl Abyss not to apologize for AI-generated assets. He claims AI will be in every video game and criticized developers for bending to critics. The gaming community and industry professionals pushed back against his stance.

Entertainment5 sources

Ex-Blizzard Boss Mike Ybarra Says AI Will Be in Every Video Game, Tells Devs to 'Man Up'

Entertainment5 sources

Dragon Quest X gets Google Gemini-powered AI companion despite fan backlash

Square Enix announced a partnership with Google to integrate Gemini AI into Dragon Quest X, creating Chatty Slimey—a conversational AI companion designed to guide players. The Japan-exclusive MMORPG will test the AI chatbot feature, but fans have responded with strong criticism, questioning whether this addresses a real player need.

Technology6 sources

Dragon Quest X gets Google Gemini-powered AI companion despite fan backlash

Technology6 sources

Game Developers Reject Generative AI Despite Tech Industry Push at GDC 2026

At the Game Developers Conference 2026, a stark divide emerged between tech companies promoting generative AI tools and game developers who overwhelmingly reject the technology. While 52% of developers now view AI negatively for the gaming industry, major publishers like Panic and BigMode refuse AI-generated games, citing concerns about human creativity, legal issues, and craft.

Technology2 sources

Game Developers Reject Generative AI Despite Tech Industry Push at GDC 2026

Technology2 sources

Crimson Desert developer Pearl Abyss apologizes for AI art, promises comprehensive audit

Pearl Abyss admitted that AI-generated art slipped into Crimson Desert's final release, despite plans to replace placeholder assets. The developer issued an apology for the unintentional inclusion and lack of transparency, announcing a comprehensive audit to identify and remove all AI content in upcoming patches.

Entertainment19 sources

Crimson Desert developer Pearl Abyss apologizes for AI art, promises comprehensive audit

Entertainment19 sources

9 out of 10 Game Developers Demand Stricter AI Disclosure Rules on Steam, Challenging Epic CEO

A major GamesIndustry.biz survey of 826 video game industry workers reveals that 88.4% believe generative AI use should be disclosed on game storefronts like Steam. The findings directly challenge Epic CEO Tim Sweeney's stance that such disclosures 'make no sense.' Despite Valve's current disclosure policy focusing only on player-consumed content, nearly half of developers want stricter requirements.

Entertainment2 sources

9 out of 10 Game Developers Demand Stricter AI Disclosure Rules on Steam, Challenging Epic CEO

Entertainment2 sources

AMD releases FSR 4.1 with sharper upscaling as community unlocks FSR 4 for older Radeon GPUs

AMD launched FSR 4.1, delivering sharper AI-powered upscaling and enhanced Ray Regeneration 1.1 for RX 9000-series GPUs. The update shares its AI model with PlayStation's PSSR 2. Meanwhile, the OptiScaler community project has successfully brought FSR 4 to RDNA 2 and RDNA 3 cards, addressing AMD's controversial exclusivity stance.

Technology2 sources

AMD releases FSR 4.1 with sharper upscaling as community unlocks FSR 4 for older Radeon GPUs

Technology2 sources

The Wheel of Time animated revival sparks fan outrage over potential AI use in production

The Wheel of Time is returning as an animated TV series, but fans are expressing serious concern over iwot Studios' partnerships with AI-focused companies. After Prime Video cancelled the live-action adaptation in 2025, the new projects—including animated films and a video game—could rely on AI technology, raising fears of what fans call 'AI slop' and 'franchisation and sloppification' of Robert Jordan's beloved fantasy series.

Entertainment2 sources

The Wheel of Time animated revival sparks fan outrage over potential AI use in production

Entertainment2 sources

NVIDIA DLSS 5 brings Hollywood-level AI graphics to gaming this fall amid controversy

NVIDIA announced DLSS 5, an AI-powered neural rendering technology launching fall 2026 that promises photorealistic graphics for games. The tech uses generative AI to enhance lighting and textures in real-time, transforming titles like Starfield, Hogwarts Legacy, and Resident Evil Requiem. But the announcement sparked backlash over concerns about AI altering game developers' artistic vision.

Technology6 sources

NVIDIA DLSS 5 brings Hollywood-level AI graphics to gaming this fall amid controversy

Technology6 sources

Take-Two CEO calls AI-generated blockbusters 'laughable' as GTA 6 nears launch

Take-Two Interactive CEO Strauss Zelnick dismisses fears that generative AI tools like Google's Project Genie threaten major game studios. Speaking on The Game Business Show, he argued that while AI can help create assets, human creativity and engagement remain essential for producing hit games like the upcoming Grand Theft Auto 6. His comments come after gaming stocks dipped when Google unveiled its AI world-generation tool.

Technology9 sources

Take-Two CEO calls AI-generated blockbusters 'laughable' as GTA 6 nears launch

Technology9 sources

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