Artificial Intelligence
Ongoing coverage on Artificial Intelligence.
Latest coverage
Hasbro games and Wizards of the Coast's new president is a former Halo studio head
Hasbro has appointed Dan Ayoub as the new president of Wizards of the Coast and Hasbro Digital Games, overseeing titles like Magic: The Gathering and Dungeons & Dragons. Ayoub, formerly of 343 Industries and Certain Affinity, expressed his commitment to fans and creators. This appointment comes amidst ongoing unionization efforts by developers concerned about AI adoption.
Nvidia and AMD invest billions into Meta as companies egg each other on to bet even more on AI
Nvidia and AMD are investing billions into Meta, with Nvidia committing $3 billion and AMD $1 billion, to bolster Meta's AI infrastructure. These partnerships involve collaborations on AI models, hardware deployment, and networking solutions. The article also touches on the broader economic impact of AI investment, including potential negative effects on gamers due to increased demand for hardware like memory.
Don't hold your breath for a sequel to the Meta Quest 3 and 3S anytime soon, as Zuckerberg reiterates "we are…
Meta CEO Mark Zuckerberg has indicated that the company will not be releasing direct sequels to its Quest VR headsets, such as a Quest 4, anytime soon. The company is shifting its investment focus from consumer VR hardware to artificial intelligence, with its Reality Labs division expecting to reduce its operating loss to around $15 billion next year. This strategic pivot, coupled with the closure of Meta's game development studios and PlayStation selling its VR patents to Meta, suggests a reduced emphasis on VR gaming in favor of AI-driven wearables.
Virtue and a Sledgehammer review – a haunting sci-fi drama about breaking walls, AI faces, and your heart
Virtue and a Sledgehammer is a haunting sci-fi drama that blends cathartic destruction with a deeply emotional narrative about family, trauma, and the corrupting nature of AI. The game's deliberate pacing and impactful flashbacks create a compelling experience that lingers long after completion.
Square Enix vets say devs of the future will need to 'master the use of AI', but the human touch will still be…
Veteran Square Enix developers Hiromichi Tanaka and Yoshinori Kitase believe future game creators must master AI, though human creativity remains essential for original ideas. They acknowledge the potential for AI to lower the barrier to entry for game development but also express concerns about idea theft and the proliferation of low-quality AI-generated content, particularly impacting indie developers.
Peter Molyneux speaks candidly about AI: 'We, as the industry, are pretending we're not using AI, but the reality is, it's almost impossible to code now without using AI'
Legendary developer Peter Molyneux believes the game industry is actively pretending not to use AI, despite it being nearly impossible to code without it. He notes that public perception of AI has been negatively impacted by early, flawed generative models, leading to platforms like Steam requiring developers to disclose AI usage. Molyneux argues that AI is a significant advancement for creativity, especially for smaller studios, and will become deeply integrated into middleware like Unity and Unreal Engine within a year.
Evening Reading - October 26, 2026
This edition of Shacknews Evening Reading covers a variety of industry news, including a review of Phantom Blade Zero, a delay for Emberville's Early Access release, and Skydance launching a voluntary buyout program. It also touches on OpenAI facing a lawsuit from Texas and the bankruptcy of Finnish esports organization ENCE. Microsoft is offering voluntary exit buyouts to employees, while Arrowhead Game Studios is focusing on Helldivers 2 over a potential Helldivers 3.
On AI in game dev, Final Fantasy and Mana veterans say humans will always need to "turn zero into one," but…
Square Enix veterans Yoshinori Kitase, Hiromichi Tanaka, and Koichi Ishii believe that while AI can streamline game development processes, human creativity will always be essential for initial concept generation. They suggest AI can handle the 'one to a hundred' tasks, freeing up humans to focus on the crucial 'zero to one' stage of innovation, though the article notes AI's role in current industry layoffs.
Shape Sender Deluxe Pulls Epic Games Store Release As Tim Sweeney Doubles Down on AI
Developer Dead Teapot has withdrawn its game, Shape Sender Deluxe, from the Epic Games Store. This decision was made in response to comments made by Epic Games CEO Tim Sweeney regarding artificial intelligence.
Texas is suing OpenAI over ChatGPT safety regulations
The state of Texas has filed a lawsuit against OpenAI, alleging that the company misled consumers about the safety of its AI chatbot, ChatGPT. Texas Attorney General Ken Paxton claims OpenAI violated online safety laws and failed to warn users about the dangers of the platform, citing instances of misdiagnosis and conflicting medical advice. The lawsuit seeks to restrict ChatGPT access for minors in Texas and require third-party approval for new models.
Microsoft is looking to cut over a quarter of the whole company in new voluntary buyout program with 60,000 employees…
Microsoft is reportedly offering a voluntary buyout program to approximately 60,000 employees, representing over a quarter of its workforce, as it continues to focus on AI development. This follows previous rounds of layoffs and buyouts, with the Xbox division being particularly affected.
Epic Games CEO calls Steam's AI disclosure policies "a political act"
Epic Games CEO Tim Sweeney has strongly criticized Valve's AI disclosure policy for Steam, labeling it a "political act" and "abhorrent." Sweeney argues that such policies force developers into making political statements that can be used by online mobs to target games and deprive them of revenue. He believes these disclosures are partisan and akin to mandatory political essays, contrasting it with Epic Games' more open approach to AI usage.
Microsoft is looking to cut more than 25% of its workforce
Microsoft has announced a voluntary exit offer to its employees in the US, UK, India, and Canada, potentially cutting over 25% of its workforce. This move is part of the company's strategy to balance spending on AI services and adapt its workforce to changing needs. Employees who accept the offer will leave on December 31.
Paris Games Biz showcased a guarded optimism in the face of turmoil, both locally and in the industry at large | Opinion
Despite civil unrest and industry-wide financial turmoil, the Paris Games Biz event showcased a guarded optimism among French game developers and publishers. Many smaller studios credited government funding initiatives with keeping them afloat, while discussions also touched on the potential of existing IP and the evolving role of marketing. Concerns were raised about the generosity of French government support compared to the UK, and the struggles of larger companies like Ubisoft were acknowledged.
'I no longer think we’re going to be able to patch all bugs' says AI Pandora's box opener Sam Altman: 'We're going to have to completely switch the defense model'
OpenAI CEO Sam Altman believes the rapid advancement of AI will make traditional cybersecurity patching obsolete, necessitating a complete shift to AI-powered defense models. He expressed astonishment at the lack of serious attention given to this escalating threat, citing examples like Anthropic's Claude Mythos model discovering numerous vulnerabilities.
VisionQuest has forever changed the way you'll watch one Avengers: Infinity War moment
The latest episode of VisionQuest reveals a major Ultron revelation that recontextualizes a key moment from Avengers: Infinity War. It is suggested that Ultron may have been able to take control of Vision's body during Thanos's time reversal, potentially altering the outcome of the Blip.
Side expands presence in China, opens new studio and acquires art outsourcing provider Roboto Entertainment
Side has expanded its operations in China by opening a new studio in Chengdu and acquiring art outsourcing provider Roboto Entertainment. Andrea Cordella, founder of Roboto Entertainment, has been appointed as Side's global head of art and studio head for the new Chengdu office. This move aims to leverage China's significant presence in the AAA and AA game art outsourcing market.
Valesong is John Smedley’s new four-player fantasy CCG made with AI
Distinct Possibility Studios has announced Valesong, a new four-player fantasy collectible card game led by John Smedley, which utilizes AI in its development. The game, described as similar to Magic the Gathering's commander format and Hearthstone, will launch on Discord on October 29th with PC and mobile versions planned later. Smedley defends the studio's use of AI, stating it allows for rapid iteration and enables smaller companies to compete.
Christopher Nolan can rest easy after Elon Musk's Grok releases a terrible AI version of The Odyssey
Elon Musk's AI assistant Grok has released a poorly received AI-generated adaptation of The Odyssey, featuring stilted dialogue and 'soulless' visuals. This project was launched amidst Musk's public criticism of Christopher Nolan's successful film adaptation of the same story, which has grossed nearly $1.8 billion.
Anthropic files S-1 with SEC, will IPO on NASDAQ and trade with ANT stock symbol
Anthropic, the creator of the AI model Claude, has filed an S-1 with the SEC to go public on the NASDAQ under the stock symbol ANT. The company reported $2.7 billion in profit for the first half of 2026 and had previously proposed a valuation of $965 billion. This move follows other major tech IPOs, including Elon Musk's SpaceX.
