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Microsoft, Sony Among AI Winners in Games, Morgan Stanley Says

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Microsoft, Sony Among AI Winners in Games, Morgan Stanley Says
  1. AI adoption offers the gaming industry a chance to reevaluate and revamp its existing business model. This is especially relevant as some game development processes have become standardized and cost-inefficient.
  2. Escalating Costs: One of the drivers behind adopting AI tools in gaming is the rising costs associated with game development and operations. AI can help manage these costs and improve efficiency.
  3. Lowering Costs for AAA Games: AI technology is expected to reduce the cost of creating and operating high-end “AAA” games by up to 15%. This cost reduction can benefit larger game publishers.
  4. Increased Competition: While AI lowers costs, it can also lead to increased competition in the gaming industry as more players enter the market with innovative AI-driven gaming experiences.
  5. Varied Impact on Publishers: The impact of AI adoption varies among game publishers. Larger publishers like Ubisoft and Take-Two Interactive Software are expected to benefit significantly from AI, while smaller ones like Playtika Holding may experience less impact and lower barriers to entry in the market.

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