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Generative AI

Ongoing coverage on Generative AI.

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Gamedeveloper.com

Analyzing the game industry's woes with Owen Mahoney

Former Nexon CEO Owen Mahoney discusses the game industry's challenges and his views on emerging technologies. After 25 years in the industry, he criticizes trends like the metaverse, VR, and NFTs but expresses optimism about generative AI's potential to revolutionize game development.

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Gamedeveloper.com

Analyzing the 2026 GDC State Of The Industry Report

The 2026 GDC State of the Industry Report, compiled by GDC Festival of Gaming, offers new insights into game development by expanding its survey pool and modifying its format. This episode features content marketing manager Beth Elderkin discussing the changes, followed by a conversation with news editor Chris Kerr and columnist Nicole Carpenter on key data points regarding layoffs, unionization, generative AI, and tariffs.

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Shack News

Godot open-source game engine bans genAI code contributions

The Godot Foundation has implemented new guidelines banning most generative AI code contributions to its open-source game engine. While AI assistance for tasks like code completion is permitted, the engine will no longer accept substantial AI-generated code to ensure human responsibility and manage the review burden on maintainers. This decision comes amidst broader industry discussions about the use of AI in game development.

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Gamedeveloper.com

Godot to ban (almost all) AI coding contributions

The Godot Foundation has announced upcoming policy updates that will ban almost all contributions of generative AI-generated code to the open-source engine. While AI assistance for tasks like code completion will be permitted with disclosure, the foundation aims to ensure all code is human-authored and maintainable by humans who can take responsibility for it.

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Rock Paper Shotgun

"Low-effort slop": The creators of the Godot engine behind Slay the Spire 2 are cracking down on "vibe-coding" and now require genAI disclosures

The Godot Foundation, the developers behind the open-source game engine used in titles like Slay the Spire 2 and Buckshot Roulette, are implementing stricter policies regarding generative AI usage. Citing a rise in "low-effort slop" and a strain on maintainers, the foundation will now require contributors to disclose any AI assistance and prohibits the use of AI for generating substantial code. This move contrasts with Epic Games' approach to Unreal Engine 6, which embraces AI integration.

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Retro Gamer

Iron Lung and Dusk creator says using generative AI in games is great if you want "a big neon sign for your…

Indie developer David Szymanski, known for Iron Lung and Dusk, expresses strong reservations about using generative AI in game development. He cites ethical concerns regarding plagiarism, environmental impact, and job security, and believes current AI tools produce subpar results and undermine the creative process by removing challenges that define an artist's voice.

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Rock Paper Shotgun

Generative AI is a "virulent plague" and even using it to eliminate "drudgery" has downsides, reckons long-time Dragon Age lead writer David Gaider

Former Dragon Age lead writer David Gaider believes generative AI is a "virulent plague" and not ready for game development, even for mundane tasks. He argues that its use risks inhibiting the training of junior developers and raises significant legal concerns due to unregulated data sourcing. Gaider suggests avoiding the technology until it is properly regulated.

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Retro Gamer

Generative AI is a "plague," says Dragon Age vet David Gaider: "It's not ready for prime time. There's just a lot of executives who really, really want it to be"

Longtime Dragon Age narrative lead David Gaider describes generative AI as a "virulent plague" in the games industry, citing concerns about legal issues, ethical implications, and the potential to hinder junior developer training. He argues that the technology is not yet ready for widespread use and that executives are pushing for it without fully understanding its limitations or impact on creative workflows.

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PC GamesN

Control Resonant lets Remedy's creativity shine, so avoiding generative AI was a "pretty natural" decision

Remedy Entertainment's upcoming action game, Control Resonant, is set to continue the studio's tradition of blending visuals, sound, and narrative. Lead Gameplay Designer Sergey Mohov confirmed the team's decision to avoid generative AI, emphasizing their commitment to creative freedom. The game will feature expanded enemy variety, including a unique 'Hiss-infested bus' enemy, and will continue Remedy's signature use of music, with a custom-written song by Vilma Jää playing a significant role in the story. Control Resonant is scheduled to launch on September 24.

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My Nintendo News

Nintendo president comments on Gen AI

Nintendo president Shuntaro Furukawa addressed shareholder questions regarding generative AI, highlighting concerns about environmental and copyright issues. The company is evaluating the technology and its potential implications.

Gamedeveloper.com

Microsoft raises price of Xbox consoles once again, sunsets 2TB model

Microsoft is increasing the prices of its Xbox Series S and Xbox Series X consoles globally starting August 1, 2026, citing a global memory hardware shortage driven by generative AI companies. The 512GB Xbox Series S will rise by $100 to $499.99, and 1TB models of both consoles will increase by $150, with the 2TB Xbox Series X being discontinued. This follows similar price hikes from Sony and Nintendo, with Microsoft explaining that consoles are typically sold at a loss, making them particularly vulnerable to component cost increases.

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Retro Gamer

Epic Games boss calls Steam AI disclosures "really irresponsible of Valve" as they make it "much, much, much harder for a game developer to have a chance of success"

Epic Games CEO Tim Sweeney has criticized Valve's decision to require developers to disclose the use of generative AI in games on Steam, calling it "irresponsible." Sweeney argues that these disclosures create a negative stigma, making it significantly harder for smaller developers to succeed. He believes AI tools are crucial for developers to remain competitive and that such tags discourage innovation.

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Eurogamer

SEGA faces backlash as Sonic the Hedgehog ARG sneakily asks for consent to train gen-AI on your data

Sega is facing backlash for its Sonic the Hedgehog alternate reality game, 'The Chaos Hunt,' which was discovered to be training AI models on participant data without clear consent. The marketing campaign, designed to celebrate the series' 35th anniversary, required users to agree to terms that allowed a marketing company, Community, to use their data for AI model training. This has sparked negative reactions from fans concerned about the increasing integration of AI in marketing.

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Shack News

Microsoft (MSFT) and OpenAI are being sued by nearly 400 newspapers

Nearly 400 newspapers have filed a lawsuit against Microsoft and OpenAI, alleging that their generative AI products have scraped copyrighted content without permission or compensation. The suit claims that Microsoft "secretly crawled" websites, including paywalled content, to train AI models. OpenAI CEO Sam Altman has previously stated the company would cover legal costs for copyright infringement claims, and this lawsuit follows similar actions by authors and publishers against AI companies.

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Retro Gamer

Well, that explains the expensive Steam Machine: Valve can't negotiate with RAM companies for better prices because "if we say no, then they never talk to us again"

Valve engineer Pierre-Loup Griffais explained that the high price of the Steam Machine is due to RAM manufacturers refusing to negotiate, leaving Valve with limited options. This issue is exacerbated by generative AI companies consuming large amounts of RAM, driving up prices for all consumers and leading console manufacturers like Microsoft, Sony, and Nintendo to increase their own hardware prices.

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IGN

Arnold Schwarzenegger AI Game is an Amazon Luna Exclusive

A new game starring Arnold Schwarzenegger has been announced as an exclusive title for Amazon Luna. Amazon also used the announcement to clarify its position on the use of generative artificial intelligence in game development.

Rock Paper Shotgun

"This crisis was avoidable, but our bosses chose to drive blindly towards disaster": French videogame union STJV call for national industry strike day

The French video game union STJV has called for a national strike on June 25th to protest ongoing layoffs and demand industry-wide changes. The union cited mismanagement by companies like Quantic Dream, Ubisoft, and Nacon, as well as government subsidies and the rise of generative AI, as contributing factors to the crisis.

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Games Industry

"This is going to be a niche device" – Analysts react to the $1,000+ Steam Machine price reveal

Industry analysts are reacting to Valve's Steam Machine pricing, which starts at $1,049, significantly higher than initially anticipated. This increase is attributed to global component shortages, particularly memory and storage, exacerbated by the generative AI boom. Experts believe this high price point positions the Steam Machine as a niche product and raises questions about the future pricing of upcoming consoles from Sony and Microsoft, with some predicting they will also exceed $1,000.

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Eurogamer

Senior EA exec Laura Miele thinks AI has led to "a real rise of creativity" among the publisher's studios

Electronic Arts' president of enterprise development, Laura Miele, believes generative AI has fostered a significant increase in creativity within the company's studios by removing tedious tasks and streamlining workflows. Despite some employee concerns and ethical debates surrounding AI, major publishers like Sony Interactive Entertainment, Capcom, and Epic Games are also embracing AI tools to improve development efficiency.

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Rock Paper Shotgun

EA are making another round of layoffs as they seek "to better meet fans’ changing needs", according to reports

Electronic Arts is reportedly conducting another round of layoffs across various departments, including recruitment, IT, and customer support, to "better meet fans’ changing needs." The exact number of affected employees is currently unknown, but the cuts include remote roles in the USA and staff in Hyderabad, India. This follows previous layoffs affecting the Skate developers Full Circle and the Battlefield 6 team earlier this year.

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