By Rashika Singh<\/p>\n
April 22 (Reuters) – Advanced artificial intelligence<\/a> tools could help cut down video game<\/a> developing costs by nearly half, potentially unlocking about $22 billion in annual \u200cprofits for game makers worldwide, Morgan Stanley analysts said.<\/p>\n The adoption of AI tools \u200cto automate tasks such as creating gaming environments, generating dialogue and testing software could help shorten production timelines and \u200breduce costs, helping lift margins over time, the brokerage said in a note dated Tuesday.<\/p>\n However, it added, gains are unlikely to be distributed evenly across the gaming ecosystem.<\/p>\n The Wall Street brokerage estimates global consumer spending on video games will total $275 billion this year, with roughly 20%, or \u200cabout $55 billion, set to be reinvested \u2060in game development and operations.<\/p>\n Typically expensive and labor intensive, game development could become leaner as AI enables smaller teams and faster post-launch improvements, \u2060Morgan Stanley added.<\/p>\n The scale of modern game development is illustrated by Take-Two Interactive’s Grand Theft Auto VI, one of the industry’s most anticipated titles, that is being developed since around 2018 – five years \u200bafter the \u200brelease of GTA V. It is currently slated \u200bfor a November 2026 launch after \u200cmultiple delays.<\/p>\n “We see value concentrating in scaled platforms and discovery, particularly among companies with proprietary data, IP, and live operations,” the brokerage said.<\/p>\n “Biggest beneficiaries may be those who control distribution, data, and engagement.”<\/p>\n Morgan Stanley added that gaming platform and operators including Tencent, Sony and Roblox could be key beneficiaries, while large publishers such as Take-Two, Electronic Arts and Ubisoft, which have \u200cthe scale to deploy AI across multiple titles, could \u200balso benefit.<\/p>\n In contrast, companies with weaker franchises, such as \u200bPlaytika and Netmarble may face greater \u200bpressure as AI lowers the cost to make mid-scale games, inviting more \u200ccompetition.<\/p>\n “Game engines such as Unity and Unreal \u200bEngine face a more \u200bbinary outcome: adapt or be disrupted,” the brokerage said.<\/p>\n Beyond cost savings, AI could lift revenues by keeping games engaging for longer, boosting spending on add-on content, in-game \u200bpurchases and subscriptions.<\/p>\n Rather than relying \u200cmainly on new releases, publishers could shift focus to upgrading existing franchises through AI-driven \u200bcontent, cushioning the financial impact, the brokerage said.<\/p>\n (Reporting by Rashika Singh and \u200bSiddarth S in Bengaluru; Editing by Diti Pujara)<\/p>\n","protected":false},"excerpt":{"rendered":"By Rashika Singh April 22 (Reuters) – Advanced artificial intelligence tools could help cut down video game developing…\n","protected":false},"author":2,"featured_media":599863,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,261075,1535,74],"class_list":{"0":"post-599862","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-game-development","12":"tag-morgan-stanley","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/599862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=599862"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/599862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/599863"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=599862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=599862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=599862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}