cross-posted from: https://hexbear.net/post/8882542
It’s a different story for the more established studios with an existing following and previous titles. Game Oracle found that the use of AI by these studios resulted in a significant 40% to 60% drop in sales.
That’s a huge difference. AI stigma seems to hit competent developers with a lot to lose the hardest, and I’m not sure that game studios are ready to accept it.



Sure, I’ll bite. Obviously nobody wants AI slop and the AI bubble killing hardware prices sucks. But I really do hope to one day see something like the holodeck.
Smaller LLM models could be great for expanding dialog options in game. Like tweaked versions of deepseek or others. Or to improve procedural generation and fill a generated place with life and characters. Or some kind of game master, when you do something unexpected that can alter the storyline to fit the new input. A “yes and” improv AI game master. Or maybe ingame crafting of items and armor (all I want is simple elegant armor lol).
I do think if you have concept artists who defines an art style and palettes and creates the characters for a game, using generative tools to “fill out” assets in that art style is also perfectly fine. Generative models that can directly generate AND render 3D models photorealistically plus 3D animations are very interesting too.
Video games are still very “limited” because costs to produce assets are incredibly high and that limits player freedom.
Lower costs to produce games will also increase diversity at least at the high end, and allows for smaller teams to make more creative games - in terms of gameplay at least. A game with new interesting gameplay and generic but aesthetically pleasing assets is win for me.
I don’t think LLMs (smaller or otherwise) can ever clear the uncanny valley. The level of adaptability you’re taking about but without hallucinations and random batshit-crazy behavior requires something humans haven’t invented yet and that we have no specific reason will ever happen. (In fact, I think if we can be said to be on a path toward building the first AGI, I believe LLMs and “generative AI” and this whole hype bubble will be looked back on as having been a diversion/destraction from that path that delayed the advent of AGI.)
Unless/until that someday happens, I’d much rather play, and feel like I’d find much more immersive, a game that generated, say, fetch-quests with something like
My {rand("health","Lord","wife","none-of-yor-business",...)} {rand("demands","begs","commissions",...)} you to bring a {rand("tufted titmouse","Gauntlet of Light","turkey dinner","giant's toenail",...)} that you can find in/at {rand("Illsword Manor","The Cavern of Lies","the afterlife",...)} to {rand("the illfated dragon","Fenworth Blurd","The Rusty Scabbard Inn",...)} in {rand("Feyspring Vale","Weston","the northern wilderness",...)}.than something with the problems inherent to LLMs.I suppose I can agree that I’d be interested in new technologies that make gaming more immersive, but “smart” NPCs that can improvise and riff while not ruining the immersion like LLMs would seem so speculative and far off that I might as well wish to stumble into the possession of a genie lamp a la Disney’s Aladdin while I’m at it. Meanwhile, grifters are making shit-tons of money at your expense promising you just that.
AGI has been only ten years away for the last fifty years. Anyone who says it’s less than ten years away now is trying to sell you a bridge.
As for the “filling out assets” and “increased diversity at least at the high end”, I think you’re overestimating the capabilities of (at least current) generative AI. And if you’re not, there are still a lot of legal issues with generative AI, and no matter which way those legal issues end up being decided, we can expect shitty results for consumers and competitors. (I fear, for instance, that the output of generative AI may be subject to copyright when big companies want it to be and not when lawsuits go in the other direction.)