We may earn commissions if you use the recommended services on this site.  

Is the Gaming Industry Prepared to Embrace AI Amidst its Current Hype?

Latest Business News

Challenges Ahead: The Gaming Industry's Readiness for AI and VR/AR Adoption

The Tokyo Game Show 2023 has put video games in the spotlight, but major game developers in Japan are expressing caution about embracing the latest trends like generative AI and virtual reality/augmented reality (VR/AR) headsets for game development. Koei Tecmo, a prominent Japanese game developer, has been using conventional algorithmic AI for a long time, but integrating generative AI into their products remains a challenge. Hisashi Koinuma, President and COO of Koei Tecmo Games, explains that they are still in the research and testing phase to determine the extent of generative AI's benefits and its impact on game production.

The Copyright Conundrum

Copyright concerns surrounding generative AI are not exclusive to Koei Tecmo. In September, Microsoft informed users of Copilot, its generative AI service, that the company would assume legal responsibility for any copyright infringement. This issue adds another layer of complexity to the integration of generative AI in the gaming industry.

Potential Revolution: VR/AR and AI Interactions

While generative AI poses challenges, the surge in VR/AR headset development offers exciting possibilities. Nvidia's demonstration of AI-powered natural language interactions with non-player characters (NPCs) showcases the potential to revolutionize the gaming industry. The recent announcements by Apple, Meta, and Sony regarding their VR/AR products further fuel the growth in this space. However, many games currently available have not met the expectations of these devices, highlighting the need for further development.

Caution and Future Prospects

Veteran developer Koinuma shares his enthusiasm for the possibilities of VR/AR and AI but remains cautious due to past experiences. Early attempts at developing VR games faced obstacles such as unsuitable gadgets for extended gameplay. Koinuma believes that the market needs time to cultivate a user base that can enjoy games with these new devices. Despite the challenges, Koinuma expresses a desire to try again when the conditions are favorable. In conclusion, the gaming industry faces hurdles in fully embracing generative AI and VR/AR technologies. While developers like Koei Tecmo are actively exploring these advancements, challenges related to copyright and device suitability persist. The industry's cautious approach reflects the need for further research, development, and user acceptance before these technologies can reach their full potential in the gaming space.

Hot Take: The Impact of AI and VR/AR Adoption Challenges on New Business Formation in the Gaming Industry

The Tokyo Game Show 2023 has spotlighted the gaming industry's hesitancy to fully embrace generative AI and VR/AR technologies. This cautious approach, particularly evident in major Japanese game developers like Koei Tecmo, could significantly shape the landscape for new businesses entering the gaming industry.

Navigating the AI Conundrum

The challenges of integrating generative AI into game development, as expressed by Koei Tecmo's President and COO Hisashi Koinuma, highlight the complexities that new businesses may face in adopting this technology. Additionally, copyright concerns surrounding generative AI add another layer of complexity. These issues underscore the importance of thorough research, testing, and legal considerations for new businesses venturing into the gaming industry.

Revolution or Hype: VR/AR in Gaming

While the surge in VR/AR headset development signals exciting possibilities, the gaming industry's cautious approach suggests that these technologies may not yet be ready for prime time. New businesses should be aware of the potential mismatch between the capabilities of these devices and the current gaming offerings. This gap highlights the need for further development and user acceptance.

Lessons from Past Experiences

Koinuma's caution, stemming from past experiences with VR game development, serves as a valuable lesson for new businesses. The gaming market may need more time to cultivate a user base that can fully enjoy games with new devices. This insight suggests that timing and market readiness are crucial factors for new businesses considering the adoption of advanced technologies. In essence, the gaming industry's readiness for AI and VR/AR adoption could significantly impact new business formation. The challenges and cautious approach highlight the need for new businesses to conduct thorough research, understand legal implications, and assess market readiness before diving into these advanced technologies.
Story First Published at: https://www.cnbc.com/2023/09/21/tgs-rd-key-to-adopting-broad-generative-ai-in-video-gameskoei-tecmo-.html
Brought to you by BusinessFormation.io
Know Your State's Registered Agent Requirements: What is a Registered Agent
Learn How To Create An LLC: What Is An LLC and How To Start an LLC Online

LLC Filing & Registered Agent Services

Compare Online LLC Filing Services Today

We work with the market leaders in business formation and registered agent services.

Getting started is simple and inexpensive. Form your business today & secure your brand name before someone beats you to it! Click below to view the Top 3 Best LLC and registered agent service providers.
View Top 3 Providers Now

Filing An LLC Can Be Complicated

Streamline Your LLC Filing Online for $39

Northwest Registered Agent is the best-rated service for first time filers.

Get professional LLC formation & registered agent services for only $39 + state filing fee. This offers includes your full LLC setup, plus a private business address, lifetime support, and more.

Trusted by Millions. Save 82% Today.