At the forefront of the emerging AI gaming movement are Microsoft and Sony, the owners of two of the biggest game ecosystems in the world. However, in the midst of continuous trials with autonomously produced images and characters driven by language models, game devs are facing waves of layoffs.

Director of Software Engineering at Sony Interactive Entertainment Sharwin Raghoebardajal demonstrated a prototype AI character for the game Horizon Forbidden West in a March YouTube video that has since been taken down. The character generates dialogue using Llama 3 and GPT-4. Sony's exclusive Emotional Voice Synthesis (EVS) technology produces speech, while OpenAI's Whisper identifies user voice inputs.

Other companies are also experimenting with conversational AI to make interactions with non-player characters (NPCs) less formulaic than Sony's. A similar idea is being investigated by Ubisoft's Project NEO NPC, which is opening the door for in-game interactions that transcend conventional dialogue trees.

A growing number of specialist models can provide whole gameplay sequences, while language models are being utilized to enhance NPC dialogue. By learning from gaming data, Microsoft's MUSE is intended to comprehend and create whole digital landscapes.

Given the amount of time and work involved in traditional game design, generative AI creates new opportunities for tiny teams who might not have had the funds to pursue more ambitious ideas in the past. As these technologies get more advanced, they may greatly simplify the game creation process and make it simpler to create intricate worlds and sceneries.