Gate News message, April 23 — Morgan Stanley estimates that AI tools could reduce video game development costs by nearly half and generate approximately US$22 billion in additional annual profit across the global gaming industry.
The bank projects global gaming spending will reach US$275 billion in 2026, with about US$55 billion reinvested in development and operations. Lower development costs could reduce the industry’s reliance on frequent new releases and enable publishers to sustain existing franchises with steady content updates.
The gains are expected to be uneven across the industry. Companies like Tencent, Sony, and Ubisoft are better positioned to benefit due to their distribution networks, proprietary data, and strong player relationships. In contrast, studios such as Playtika and Netmarble, which lack strong core intellectual property, may face increased pressure as AI makes mid-tier game production more accessible. A separate Morgan Stanley analysis suggests cost savings for AAA publishers could be closer to 15%, while Take-Two’s CEO noted that AI building a game from scratch is “laughable.” The shift may also reshape staffing, with increased demand for senior software engineers and game development leads to oversee larger project portfolios, though a broad drop in developer jobs is not expected.
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