The rampant contraction, consolidation, and uncertainty in the games industry risks boxing out creators and denying opportunities for teams to develop and master their craft. A new generation of household names like Larian, Remedy, FromSoftware, CD Projekt Red, or Respawn may never be allowed to bloom today. At least, that's the concern of veteran game developer Xalavier Nelson Jr. of (mostly) Strange Scaffold fame.
Originally, I spoke to Nelson Jr. about how, in his view, generative AI won't solve the games industry's budget problems – one of many reasons a lot of game developers don't want to use gen AI. In short, AI didn't cause the unsustainable approach to game development afflicting many publishers, and worse games made cheaper with AI won't fix it. As Nelson Jr. puts it: "We are spending an unknown amount of money in an unknown amount of time to make a game of unknown quality to reach an unknown amount of people." And so far, AI has only added another budget problem: the AI-driven RAM drought has seen console (and Steam Machine) prices rise so high that these machines are no longer accessible to many.
