yixuanjiangbusinessofmedia

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AI in HoYoverse's Honkai: Star Rail, and its Trends in Game Industry

On its launch day, Honkai: Star Rail remarkably registered 20 million downloads, a testament to the game's immediate success. 

The game is colossal, brought to life by a team of over 500 dedicated individuals, and with plans for continuous growth.The developers have skillfully integrated AI technologies into the game to improve specific aspects. This includes enhancing the characters' facial appearances and behavioral patterns, contributing to a more immersive and natural gaming experience for the players. This application of AI has proven successful in creating a game that is not just engaging but also more realistic.

Interestingly, HoYoverse isn't new to the world of AI. In 2022, they made headlines by using an AI-generated voice to replace a vocalist in their otome title, Tears of Themis. The move came about due to the vocalist's unavailability, and the result was an encouraging demonstration of AI's potential in this space.

However, despite these advancements, the developers of Honkai: Star Rail believe that AI still has a long way to go. Specifically, they feel that AI isn't ready for content scripting, considering the game's story-driven nature. Despite its current limitations, the intrigue around AI's potential for more in-depth application continues to grow.

This trend of embracing AI in the gaming industry isn't exclusive to HoYoverse. Many game studios and developers are actively exploring and considering the implications of new AI technologies in their work. Unity,a popular game engine, is another notable example. They have introduced a beta program for developers of third-party AI tools, making it easier for game creators to access and utilize AI in their projects. Unity's promotional video demonstrates the potential of AI-generated content by showcasing how plain text prompts can be transformed into in-game assets, such as large-scale terrains, moody skies, and even flying alien mushrooms.The integration of AI in game development has opened up an "explosion of opportunity" for the industry. As AI technology advances, it has the potential to level the playing field for developers of all resource levels, allowing them to compete with more prominent studios.(342)

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The Impact of AI on Game Art: Examining China's Decimated Industry and New Trends in Game Industry

China's game art industry is reportedly being decimated by the growing use of AI, and this has led to concerns about ethics and the future of the industry. According to Rest of World, the use of AI in China has caused illustration jobs to decrease by 70%, with companies relying more on AI-generated assets for video games. However, players are unimpressed with the results.

Chinese gaming giants and indie developers have started to adapt to the cost-cutting potential of AI, and this has led to controversy. NetEase had a Naraka: Bladepoint event in which players used AI to generate character skins for the action-adventure battle royale game. Chinese players criticized the decision, saying that AI-produced characters looked soulless and improperly rendered.

Similarly, Tencent has openly researched and implemented AI technology, but its adoption hasn’t gone smoothly. One of its studios was caught in a gaming controversy earlier this year after parts of an Alchemy Stars poster were partially produced with AI. This led to a public apology from the developer.

The concern about AI in the video game industry is not limited to China. In the wake of concerns about AI artwork on Artstation, Epic Games released an official policy regarding AI artwork on the portfolio website. While Artstation won't be banning AI art entirely, Epic plans to address artists' concerns by implementing a tagging system so artists can choose whether or not to let their artwork be used for AI research.

As AI use in the video game industry grows, there are concerns about its impact on human labor and ethics. However, some startups and game developers see AI as a way to generate game art assets faster and more efficiently. For example, Scenario is an AI platform that lets game developers and artists create their own image generators trained on the specific style of their games. Meanwhile, Ubisoft has created the Ghostwriter tool, an AI tool that supports scriptwriters by allowing them to select and polish AI-generated samples for NPC barks.

Considering its potential is limitless, AI is expected to continue to play a significant role in the game industry, while also posing ethical concerns related to its impact on human creativity and labor. (360)

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Netflix Games' Masterstroke: Joseph Staten Joins the Ranks to Fulfill Ambitious Gaming Strategy

Netflix has taken a significant step forward in the video game industry by bringing Joseph Staten, the former Bungie Director, on board as the creative director of Netflix Games. This move underscores Netflix's relentless expansion and ambition in the gaming world, spanning from mobile games to AAA titles.

 Staten will be working on a new AAA multiplatform game and original IP for the streaming giant. He expressed his excitement for the opportunity to collaborate and create new worlds with iconic characters and adventures. His move to Netflix follows his previous role as the creative director for Halo Infinite at 343 Industries, and a subsequent position at Xbox Publishing. 

Netflix's gaming strategy began with a focus on mobile games. The company launched Netflix Games in late 2021 with a catalog of titles based on popular Netflix shows and a selection of acclaimed indie games. Netflix has also entered a partnership with Ubisoft to release three mobile titles exclusively on its platform, emphasizing its dedication to expanding its mobile gaming offerings.

As part of its expansion strategy, Netflix has been aggressively opening new studios and acquiring talented developers. In September 2022, the company hired Marko Lastikkato lead a new internal game studio in Helsinki, Finland. Following this move, Netflix opened another game development studio in Southern California in October 2022, led by Chacko Sonny, a former executive producer of the Overwatch franchise at Blizzard Entertainment. These studios join other acquisitions like Night School Studio and Boss Fight Entertainment in creating a diverse portfolio of games for Netflix.

Additionally, Netflix is exploring the field of cloud gaming, as disclosed by Leanne Loombe, the company's VP of external games. Netflix is carefully considering how it develops the service, aiming to provide a seamless and accessible gaming experience no matter where users are.

Netflix's gaming strategy revolves around continuous expansion, showcasing its ambitions in the video game industry by venturing into mobile games, AAA titles, and cloud gaming. Joseph Staten's appointment as creative director of Netflix Games is a testament to the company's commitment to realizing its vision. (343)

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Epic Games Committed to Metaverse while Tech Companies Shift Focus to AI

In recent years, the concept of the metaverse has captured the imagination of the tech industry, with companies like Epic Games making significant strides in turning this virtual shared space into reality. However, as the excitement around artificial intelligence (AI) continues to grow, many tech companies are shifting their focus and resources from the metaverse to AI development.

Epic Games, the company behind the popular game Fortnite, has been one of the key players in the metaverse race. Their recent showcase at the Game Developers Conference (GDC) demonstrated numerous features, tools, and technologies aimed at bringing their vision of the metaverse to life. With the unveiling of the Unreal Editor for Fortnite, user-generated content monetization plans, a unified marketplace, Metahuman Animator, and more, Epic Games seemed committed to making the metaverse a reality.

However, as AI takes center stage in the tech world, many companies are redirecting their attention and resources to the development of AI systems and applications. As a result, the metaverse is increasingly being pushed to the background, despite the significant progress made by companies like Epic Games.

Epic Games' executive vice president Saxs Persson acknowledged this shift in priorities, stating that his company is "the last to unironically use the term metaverse." According to Persson, the metaverse is still the best way to describe the vision they have for a scalable ecosystem that brings together a critical mass of people, creator-generated content, and meaningful social interactions.

Despite the growing focus on AI, Epic Games remains committed to the metaverse concept, with Persson asserting that their goal is to create an ecosystem where people can build what they want and receive fair compensation for their creations. The company's Creator Economy 2.0 initiative aims to share 40% of Fortnite's net revenues with creators, including independent creators and Epic's own islands, based on engagement and popularity.

As AI continues to dominate the tech landscape, it remains to be seen how the metaverse will evolve and whether tech companies will eventually refocus their attention on this ambitious virtual shared space. The metaverse’s  potential for transforming the way we interact with technology and one another cannot be overlooked.

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Microsoft offers remedies to EU to win approval for ABK acquisition

Microsoft has reportedly proposed remedies to the European Commission in an effort to secure approval for its $68.7 billion acquisition of Activision Blizzard. This move has led to the deadline for the regulatory review being pushed back once again, giving the European Union (EU) additional time to assess Microsoft's offer and its potential impact on the gaming industry.

The proposed remedies aim to address concerns raised by the EU over the massive acquisition, which could potentially alter the competitive landscape in the gaming market. Details of the remedies have not been disclosed; however, they are likely designed to appease regulators and secure a favorable outcome for the deal. Microsoft's acquisition of Activision Blizzard, the largest in its history, would bolster the company's gaming portfolio and significantly expand its reach in the industry, according to gamesindustry.biz.

As part of the regulatory review process, the EU must determine whether the acquisition would lead to reduced competition, increased prices, or other negative consequences for consumers[2][3]. Competitors and other industry stakeholders have expressed concerns about the acquisition, fearing that Microsoft's strengthened position could result in an unfair advantage[3]. In response to these concerns, Microsoft has put forth these remedies to ensure a fair and competitive market.

The deadline for the EU's decision has been extended several times, reflecting the complexity of the case and the thorough investigation being conducted by regulators. The new deadline has been set for April 26, 2023, providing the European Commission additional time to assess Microsoft's proposed remedies and determine the acquisition's impact on the gaming market. While the regulatory review is ongoing, Microsoft and Activision Blizzard have both expressed optimism about the deal's prospects. If the acquisition is approved, it would strengthen Microsoft's gaming division, particularly its Xbox Game Pass subscription service, which would benefit from the addition of Activision Blizzard's extensive library of popular titles. The deal would also boost Microsoft's competitive position against rivals such as Sony and Nintendo. (323)

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Amazon to Cut 9,000 More Jobs: Mainly on Games

Amazon is reportedly preparing for a major restructuring effort that involves cutting around 9,000 roles from its workforce, as per information from The Verge. These layoffs will impact a variety of the company's departments, including Amazon Web Services (AWS), the gaming division, and the popular streaming platform Twitch. The decision to implement these changes arises from Amazon's strategic shift in focus towards areas with higher growth potential and more lucrative financial returns.

The restructuring plan is designed to consolidate resources and streamline operations, as Amazon faces increasingly intense competition in several of its business segments. The tech giant's gaming division has experienced multiple setbacks in recent years, with the cancellations of games such as Breakaway, Crucible, and the indefinite postponement of New World. These challenges have led Amazon to reevaluate its strategy and reallocate resources to other, more promising areas of its business.

Twitch, the live streaming platform acquired by Amazon in 2014, has also faced its share of struggles, particularly in the form of increased competition from rivals like YouTube and Facebook Gaming. Although Twitch still maintains a significant market share, the platform's growth has slowed, prompting Amazon to reconsider its investment in the streaming platform. Consequently, the layoffs are expected to affect several Twitch departments, as Amazon seeks to optimize its overall business model. According to the New York Times, Twitch  said it was laying off more than 400 people, about 22 percent of its total staff.

Amazon Web Services (AWS), the company's cloud computing division, has been one of its most profitable and fast-growing segments. However, AWS is facing mounting competition from industry giants like Microsoft and Google, who are actively expanding their own cloud offerings. As a result, Amazon is reorganizing its AWS workforce, which will include job cuts, in order to maintain its competitive edge in the rapidly evolving cloud computing market.

In addition to these operational changes, Amazon is also focusing on expanding its physical retail presence, as evidenced by the recent acquisition of Whole Foods and the launch of Amazon Go stores. The company is constantly evaluating new opportunities to maximize growth and profitability, which is driving its decision to restructure and eliminate these 9,000 roles. (365)

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Hollywood’s Big Video Game Gamble Starts, According to Sony Exec

At the DICE summit 2023, a premier video game networking conference, people got the answer from Sony Pictures senior VP of virtual reality Jake Zim about the reason for the recent boom in adapting games to film and television series.

It's easy to see that recently game adaptations of movies and TV shows have become the new renaissance trend. HBO's recently released hit TV series The Last of Us’s  first episode aired garnered the second-highest viewership in HBO's history as well as superb reviews. In addition, Netflix has just recently announced that it will soon set up a new film studio to bring BioShock to the big screen. Moreover, there are more than 40 heavily invested adaptations coming in the next three years.

In fact, it is not difficult to see the advantages of game adaptations: they have an already established and loyal audience with a strong desire to consume. For example, as a sequel to The Forest, Sons of the Forest sells 2m in 24 hours. But Zim raises a more original and realistic point of view. Zim‘s "incomplete" theory builds on the question: "When is the last time that a major new franchise IP came into the entertainment space on any platform?"  He then explained that the current prevalent source of IP has been exploited, while the game field is a relatively unexplored "barren land". In addition,  video games adaptations can integrate the development of virtual reality to show fans a new gaming experience. All these make the games have a unique advantage in the field of intellectual property adaptations.

But the same game adaptations face some problems. For example, Zim's theory is built on a reasonable parity between the supply of game IP and the demand for film and TV adaptations. If the game IP is too low, then the investors will shift the track. In addition, from a historical point of view, if we use the comic adaptation boom in the 1990s as a comparison, there is a possibility that some game developers will follow the trend of making games just to be adapted, and there will be a large number of failed results. （358）

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UK regulator finds Xbox Game Pass eats into game sales

The UK Competition and Markets Authority's provisional report on Microsoft identifies that Xbox Game Pass has caused a negative impact on game base sales. 

Xbox Game Pass is a subscription service. It allows players to play hundreds of Xbox games at a low monthly subscription price, and is available on Xbox consoles, PC, and mobile devices. When the subscription period ends, players lose access to the games.

This reality is at odds with what Xbox head Phil Spencer described in 2018.Spencer showed that by a large number of players buying Xbox Game Pass and having access to more games, it instantly raises the awareness of the game, and therefore "actually leads to more sales of [a] game." Plus, Xbox Game Pass is "profitable," according to Spencer in 2019.

Xbox Game Pass, while allowing players to gain and also providing Xbox with significant revenue at the same time, has caused a certain degree of impact on the games that go live on the Xbox platform. At present, the launch of Xbox Game Pass for gamers to buy games desire impact, there is no definite conclusion. Players' behavior fluctuates from moment to moment as to whether to get the game on Game Pass, or whether to buy it out. But the information obtained from the report is accurate: Microsoft admits that Xbox Game Pass has reduced the sales of the game. This is not good news for the game developer itself. Players enjoying a large number of games on the Xbox platform will be less likely to buy games on other platforms at the original, relatively high price. As a result, the sales of games released on multiple platforms will be greatly reduced, and the future of game producers is worrying.

It also brings the problem of unhealthy competition. The report from UK was submitted because of Xbox's need to acquire the British gaming company Activision Blizzard. With the double concern, various game developers and distribution platforms have been scrutinizing Xbox. And, the EU spurs formal Antitrust Warning to Xbox. (339 words)

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23/1/30 My Sector is Gaming

My sector is Gaming and I will be following the Kotaku, IGN, Games Industry.biz, The Verge, Wired, etc.