AI has moved beyond being a mere buzzword. Google and Microsoft have introduced search engines and productivity applications powered by AI. However, there is one domain where AI has not fully asserted its transformative influence. Analysts propose that the incorporation of AI into the gaming sector presents a promising opportunity for companies to enhance their business prospects, with Microsoft and Sony emerging as the primary beneficiaries.
Morgan Stanley, as cited by Bloomberg, anticipates that gaming platforms such as Microsoft’s Xbox and Sony’s PlayStation will be the foremost beneficiaries of AI integration within the gaming industry. Rather than facing potential risks, these gaming companies are positioned to become the primary avenues for deploying AI tools.
Challenges in the gaming sector
As per analysts, the gaming sector has witnessed a slowdown in growth, partially due to rising costs. This has prompted gaming companies to integrate and improve AI tools in their game development processes. Morgan Stanley suggests that AI tools could potentially revolutionize the game creation landscape, potentially decreasing the production costs of high-end AAA games by up to 15%.
Major gaming platforms set for success
AAA games, representing high-budget titles from established publishers, stand to gain significant advantages from AI adoption in the gaming industry. Publishers like Ubisoft Entertainment, Nexon, and Take-Two Interactive Software may experience substantial reductions in production and operational costs, potentially resulting in a 10% boost in earnings. However, smaller entities such as Unity Software, Roblox, and Tencent Holdings might face increased competition, underscoring the importance of innovation for maintaining a competitive edge in this dynamic landscape.
Application of AI in Gaming
In the current scenario, a notable application of AI in gaming involves creating distinct in-game characters, such as non-playable characters (NPCs) and enemies. AI empowers these characters to display behavior closely resembling human control, enhancing the overall immersion for players.