BUSINESS

In Depth: Video Game Studios Bank on AI Future

Published: Sep. 12, 2025 9:29 p.m. GMT+8

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A growing number of game developers are using AI to create in-game assets, dialogue and even game plots. Photo: AI generated

Video game studios are using artificial intelligence (AI) to reshape how video games are made.

The latest example of this change is Whispers from the Star, where the player guides a stranded astronaut through life-or-death choices by having open-ended, AI-driven conversations.

The game was released on Steam last month and has received mostly positive reviews. It was developed by Anuttacon, a California startup founded by Cai Haoyu, who also cofounded Mihoyo Co. Ltd., a Shanghai-based game developer and publisher.

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What Happened When

July 2024：: There were about 1,000 games on Steam disclosing use of generative AI.

September 2024：: Cai Haoyu made a post on LinkedIn predicting AI-generated content would revolutionize game development.

By 2025：: The context length of large language models (LLMs) increased significantly, improving AI’s ability to handle UGC in games.

June 2025：: 11 Bit Studios released its game The Alters, later criticized for failing to disclose its use of AI-generated content.

Second quarter of 2025：: An Israeli Web3 game studio laid off 25% of its staff after adopting AI.

July 2025：: A survey by Ichiro Lambe reported that the number of games on Steam disclosing use of generative AI surged to 7,818 from about 1,000 in July 2024.

August 2025：: Whispers from the Star, developed by Anuttacon, was released on Steam and received mostly positive reviews.

August 2025：: China Digital Entertainment Expo & Conference in Shanghai took place; an Israeli Web3 game studio revealed it had laid off 25% of staff in Q2 2025 after adopting AI, with another 25% expected to be fired in coming quarters.

AI generated, for reference only