AI has transcended being merely a trendy term. Google and Microsoft have already introduced AI-powered search engines and productivity applications. However, there’s one arena where AI has yet to establish itself as a transformative influence. Analysts suggest that AI’s integration into the gaming sector offers a promising opportunity for companies to advance their business prospects, with Microsoft and Sony emerging as the primary beneficiaries.
According to Morgan Stanley, as reported by Bloomberg, gaming platforms like Microsoft’s Xbox and Sony’s PlayStation are poised to be the most prominent beneficiaries of AI adoption within the gaming industry. Instead of being exposed to risks, these gaming companies are poised to become the primary channels for disseminating AI tools.
Problems’ in gaming industry
According to analysts, the gaming industry has experienced a deceleration in growth, partly attributable to escalating expenses. This has likely incentivized gaming companies to incorporate and enhance AI tools within their game development processes. Morgan Stanley posits that AI tools have the capacity to revolutionize the game creation landscape to the extent that they could reduce the production costs of high-end AAA games by as much as 15%.
Bigger gaming platforms to thrive
AAA games are top-tier, high-budget titles created and distributed by prominent, established publishers. Consequently, AI adoption in the gaming industry holds the potential for substantial advantages, particularly for game publishers such as Ubisoft Entertainment, Nexon, and Take-Two Interactive Software. It could translate into significant reductions in production and operational expenses, potentially leading to a 10% increase in earnings.
Nonetheless, the investment banking firm also indicated that smaller entities like Unity Software, Roblox, and Tencent Holdings may encounter heightened competition due to lower entry barriers. Therefore, innovation within this domain becomes essential for smaller platforms to maintain their competitive edge.
AI use case in gaming
In the current landscape, one of the most prominent applications of AI in gaming is the development of specific in-game characters, including non-playable characters (NPCs) and enemy characters. AI enables these characters to exhibit behavior that closely resembles human control, contributing to a heightened level of immersion for players.
