AI adoption is expected to impact the video game industry. According to Bloomberg, Morgan Stanley analysts say that major game platforms like Microsoft’s Xbox and Sony’s PlayStation are likely the primary beneficiaries of AI adoption in the game industry.
These platform companies are expected to be more insulated from the risks of disruption posed by AI and are likely to become the primary means for distributing AI tools.
Companies expected to benefit from AI adoption in the gaming industry include Unity Software Inc., Roblox Corp., and Tencent Holdings Ltd. AI is seen as a way to potentially overhaul the traditional business model in the gaming industry, which has become bloated and formulaic in some cases. Game companies are adopting and developing AI tools to address rising production costs and stagnant product prices.
For larger AAA game publishers like Ubisoft Entertainment SA, Nexon Co., and Take-Two Interactive Software Inc., AI adoption is expected to have a positive impact, potentially resulting in lower costs and increased earnings.
AAA games are high-budget games with cutting-edge graphics, extensive gameplay, and well-known franchises.
Take-Two Interactive Software Inc., the owners of Rockstar Games and 2K Games, is potentially seeing a 10% earnings lift from lower prices.
However, smaller publishers like Playtika Holding Corp. makers of games like Slotomania, may benefit less from AI adoption and could face increased competition due to lower barriers to entry in the industry.
Overall, AI is expected to bring significant changes to how games are made and distributed in the gaming industry, with different companies experiencing varying degrees of impact and benefits.