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AI is not just a buzzword anymore. Both Google and Microsoft have already launched their versions of AI-powered search engines and work apps but there’s one space where AI is yet to emerge as a driving force. According to analysts, AI adoption in the gaming sector may present an opportunity for companies to boost their business, and two companies – Microsoft and Sony – are said to be the biggest beneficiaries.
According to Morgan Stanley (via Bloomberg), gaming platforms such as Microsoft’s Xbox and Sony’s PlayStation will be “the most clear-cut beneficiaries of AI adoption in the game industry.” Instead of being susceptible to risks, it said that the gaming companies are on track to become the primary means for distributing AI tools.
‘Problems’ in gaming industry
The analysts said that the growth in the gaming sector has slowed down due to rising costs that could have prompted game companies to adopt and develop AI tools in the game development process. Morgan Stanley states that AI tools have the potential to reshape how games are created. So much so that AI tools may lower the costs of AAA games by up to 15%.
Bigger gaming platforms to thrive
AAA games are high-budget games that are produced and distributed by large, well-known publishers. This means that with AI, game publishers like Ubisoft Entertainment, Nexon and Take-Two Interactive Software can see huge benefits with lower production and operational costs, resulting in a potential earnings boost of 10%.
However, the investment banking company also said that other smaller companies like Unity Software, Roblox and Tencent Holdings may suffer from greater competition due to lower barriers to entry. Hence, innovation in this space will help smaller platforms to stay competitive.
AI use case in gaming
The biggest use case of AI in gaming, at these times, is said to be in programming certain characters such as non-playable characters (NPC’S) and enemy characters in a video game. With AI, they may act in a way that feels as if they were controlled by a human, resulting in a more immersive experience.
According to Morgan Stanley (via Bloomberg), gaming platforms such as Microsoft’s Xbox and Sony’s PlayStation will be “the most clear-cut beneficiaries of AI adoption in the game industry.” Instead of being susceptible to risks, it said that the gaming companies are on track to become the primary means for distributing AI tools.
‘Problems’ in gaming industry
The analysts said that the growth in the gaming sector has slowed down due to rising costs that could have prompted game companies to adopt and develop AI tools in the game development process. Morgan Stanley states that AI tools have the potential to reshape how games are created. So much so that AI tools may lower the costs of AAA games by up to 15%.
Bigger gaming platforms to thrive
AAA games are high-budget games that are produced and distributed by large, well-known publishers. This means that with AI, game publishers like Ubisoft Entertainment, Nexon and Take-Two Interactive Software can see huge benefits with lower production and operational costs, resulting in a potential earnings boost of 10%.
However, the investment banking company also said that other smaller companies like Unity Software, Roblox and Tencent Holdings may suffer from greater competition due to lower barriers to entry. Hence, innovation in this space will help smaller platforms to stay competitive.
AI use case in gaming
The biggest use case of AI in gaming, at these times, is said to be in programming certain characters such as non-playable characters (NPC’S) and enemy characters in a video game. With AI, they may act in a way that feels as if they were controlled by a human, resulting in a more immersive experience.
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