AI is going to be the next big thing in the gaming industry! Recently, we have seen many tools and platforms integrate Artificial Intelligence to appeal to a broader audience. The gaming industry has been no stranger to it, as many developers have started to use AI to create games. Now it looks like gaming giants Xbox and PlayStation will also be heading in this direction.

The entry of Xbox and PlayStation in the AI world raises many possibilities. Looking at the top companies in the gaming industry that use Artificial Intelligence tools will also prompt other game developers to use them. But a question arises – will the impact of Xbox and PlayStation using AI be a positive one for the game industry?

Xbox and PlayStation take huge strides toward AI in gaming


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On November 6, Xbox announced they are going to partner up with Inworld. This partnership is to bring the power of Generative AI and GPT to empower game developers in storytelling and character creation. Inworld is focusing on building AI game dialogue & narrative tools together with Microsoft. In this partnership, they are looking to deliver a multi-platform AI toolset to assist and empower creators in dialogue, story & quest design.

The console makers further shared the details about the toolset. It will include an AI design copilot – that helps developers design their games and an AI character runtime engine – that can be integrated into the game client to dynamically generate stories, quests, and dialogue. While Xbox has taken the first step toward AI now, PlayStation already took this decision 5 days ago.

On November 2, Sony announced their acquisition of UK-based company iSIZE. The recently acquired company builds AI-powered solutions to deliver savings and quality improvements. This acquisition will provide PlayStation a significant edge in the field of machine learning. On an interesting side note, Sony has not disclosed the acquisition cost, citing contractual commitments.

But with this move, both Xbox and PlayStation have announced AI is here in the gaming industry, and it is here to stay. How other developers implement it will be fun to watch. Nintendo and other gaming studios are yet to include AI in their games.

The stance of the gaming industry towards AI

Till now, the gaming industry had a mixed reaction to the usage of AI in gaming. The first divide between AI and the gaming industry occurred when the asset stores were bombarded with AI-generated assets and images. This led many graphic and asset designers to protest against the use of AI, thinking it would endanger their livelihood. Many artists took down their artworks and replaced them with ‘Say No to AI’ banners.

This chasm between AI and the gaming industry deepened when the biggest PC game distribution platform Steam showed anti-AI views. Some game developers have been using AI tools to create their games. However, Valve shocked the gaming community when it denied AI-generated games to join Steam. This led to a heated debate online, leading to them issuing a statement.

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But all these instances led to many developers not trusting AI for creating their games. This stance, however, is bound to change following Xbox and PlayStation showing a pro-AI stance. However, a question arises will the change be for the better or the worse?

How will Xbox and PlayStation impact the usage of AI in the gaming industry?


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With Xbox and PlayStation fully in favor of AI, many developers are expected to follow their steps. Developers like Square Enix have already started implementing AI in their games. Their latest release, Final Fantasy XVI, features the use of AI-controlled companions that support the main protagonist, Clive Rosfield. Clive is the only controllable character, with other characters being AI-controlled and having their attack and magic abilities.

This game has already received acclaim from many critics. Final Fantasy XVI also proves if implemented correctly, AI can become a wonderful asset for game developers. Another field where AI is being widely used is NPCs. Earlier developers had to write bulky code for these characters and how they would interact with players. With the use of generative AI and machine learning, the size of code and ease of implementation of NPCs has increased.


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Many developers are also using AI to create difficult instances of their games, meaning the total time of development decreases rapidly. Procedural map generation and difficulty level adjustment are some other cases where developers can harness the power of AI in gaming. Xbox and PlayStation have realized this potential and are taking huge strides towards AI. The third gaming giant, Nintendo, is yet to show any signs of using AI. But one thing is for sure, AI is here in the gaming industry, be it for the better or the worse.

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