The Google Cloud director warns that generative AI is restructuring the entire industry with 90% of developers having adopted the technology.
Generative AI is triggering a comprehensive restructuring in the gaming industry, and not every studio will be able to withstand this shock. A warning from Jack Buser, Global Director of Gaming at Google Cloud, indicates that the industry is entering a period of significant volatility comparable to any historical moment before.
Buser, with 30 years of experience in the industry, currently works with publishers and studios in adopting cloud infrastructure and AI. From his position at the intersection of Big Tech and game development, he asserts: 'Some gaming companies will survive, some will not. And others will be born from this revolution.'
AI appears just as developers face increasing financial pressure and a decline in player engagement with new games. According to Buser, more than half of playtime currently belongs to games that have been released for over six years, forcing new titles to compete for less than half of the available playtime budget.
After decades of growth, the global gaming industry has slowed down post-pandemic. In 2024, revenue is expected to reach $182.7 billion, a 3.2% increase from the previous year, and is forecasted to reach $188.9 billion in 2025 with a growth of 3.4%. 'You have a broken business model, leading to layoffs, project cancellations, and many other issues in the gaming industry in recent years,' Buser emphasizes.
The era of 'live games' and deployment challenges
However, Buser believes generative AI could be the way out. A Harris Poll survey commissioned by Google shows that 9 out of 10 developers have used AI tools in their production process. Implementing AI at every stage of development could significantly reduce production time.
Developers are experimenting with generative tools to change how games are designed and operated in real-time. Buser calls this the era of 'live games' – games that use AI to analyze player behavior and generate instant content, adapting within minutes instead of months like traditional patches.
However, deployment is not always smooth. When Fortnite launched an AI-integrated Darth Vader earlier this year, the bot made racist and homophobic remarks before Epic Games had to quickly patch it. Following this incident, SAG-AFTRA filed a labor complaint against Epic's subsidiary, alleging the replacement of voice actors with AI without consent from the union.
Buser compares the increasing role of AI to previous major technological upheavals – moments of technological innovation that have redrawn the industry. Some companies adapted to the transition from cartridge to CD-ROM, while many others did not. 'The same is happening right now,' he concludes, predicting the emergence of new gaming giants from this AI era.