The Gaming Industry Reshaped from Scratch by Artificial Intelligence (AI) II

ARTICLES
May 18, 2024

With the advancement of Artificial Intelligence (AI) technologies, the gaming industry is demonstrating enormous market share and growth potential. Particularly, the use of AI in video games transforms gaming experiences into more dynamic and interactive forms, contributing to the market’s expansion. The effective use of AI in mobile games has triggered a fundamental transformation in the gaming industry, redefining experiences across platforms. Below is a visual representation of the current trends generated by AI and its potential in the near future.




With the advancement of Artificial Intelligence (AI) technologies, the gaming industry is demonstrating enormous market share and growth potential. Particularly, the use of AI in video games transforms gaming experiences into more dynamic and interactive forms, contributing to the market’s expansion. The effective use of AI in mobile games has triggered a fundamental transformation in the gaming industry, redefining experiences across platforms. Below is a visual representation of the current trends generated by AI and its potential in the near future.

Game Studios’ Perspectives on Artificial Intelligence

The adaptability of game studios to AI technologies holds significant importance. Research within the industry shows that 99% of gaming companies plan to use AI, while 87% are already actively implementing it. These figures are clear evidence of the transformation AI is creating in game design and development processes.

Examples from Games

  • Heavy Rain and Detroit: Become Human: Use AI algorithms that adapt storylines based on player choices, strengthening emotional engagement with the game. NPCs in games like Halo and Call of Duty coordinate enemy tactics and respond realistically to player actions, offering more complex and dynamic reactions.

  • The Witcher 3: Wild Hunt: Storylines and world dynamics change based on player decisions. These choices affect relationships with characters and the game’s progression and ending in significant ways.

  • Mass Effect Series: Player decisions shape character relationships and narrative progression. Each player’s experience unfolds and concludes differently depending on the decisions they make.

  • Until Dawn: Player choices determine which characters survive and how the story ends. Inspired by the “butterfly effect,” even the smallest decisions lead to dramatic shifts in the storyline.

  • Life is Strange: Choices shape story progression and character relationships. Its time-rewind feature allows players to alter their decisions, changing the narrative path.

Game studios are using AI not only to shape character behaviors but also to create more interactive worlds that respond intelligently to player actions. This leads to richer, more immersive gaming environments.

Leading Companies in Our Portfolio

Our pioneering portfolio companies—Gulliver’s Games, UGC90, Mafia Games, Arvis Games, Veloxia Games, Fiber Games, Lokum Mobile, Hungri Games, Last Bite Games, GameDev, Frozen Pawn Games, and Toon Metal Games—strategically leverage AI technologies to revolutionize gaming experiences. These firms carefully analyze player behaviors and continuously enhance in-game experiences, boosting player satisfaction significantly. This innovative, strategic approach strengthens their competitive edge in the industry, enhances the market’s appeal, and showcases their advanced levels of creativity and innovation.

Companies Developing AI for Game Technologies

  • Ubisoft: Enhances NPC realism in games like Ghost Recon: Wildlands. Through Ubisoft La Forge, continues to invest in AI research.

  • Electronic Arts (EA): Innovates with AI in titles like Madden NFL, where AI imitates player behavior and adapts in real time.

  • NVIDIA: Employs AI and deep learning in game development. Its DLSS (Deep Learning Super Sampling)boosts visual quality by upscaling lower-resolution images.

  • Google DeepMind: Advances AI’s strategic thinking and learning, enabling more challenging and interactive gaming.

  • Unity Technologies: With its ML-Agents Toolkit, allows developers to design customized AI behaviors for smarter games.

Entrepreneurial Ecosystem Partners Supporting AI in Gaming

  • Y Combinator: Provides funding and mentorship for innovative AI and gaming projects.

  • Techstars: Offers accelerator programs worldwide, supporting AI and gaming startups.

  • Andreessen Horowitz (a16z): Invests in AI and gaming startups, backing industry innovation.

  • NVIDIA Inception: Supports startups with technological resources and expertise, particularly those integrating AI in game development.

  • Microsoft for Startups: Provides cloud services, mentorship, and business development resources for AI and gaming startups.

These partners offer funding, mentorship, technology, and marketing support, helping transform innovative AI ideas into reality within the gaming industry.

Conclusion

AI’s impact on games is expected to become even more widespread with advanced realism, dynamic worlds, and innovative design tools. Combined with AR, VR, and cloud gaming, AI will revolutionize both development and gameplay, creating more interactive and realistic virtual worlds where player actions deeply affect outcomes.

As AI advances, it will not only deliver more personalized experiences but also push the boundaries of creativity and immersion. AI developments signify not just technological leaps but also the creation of accessible, inclusive games tailored to diverse global audiences.

The future of AI in gaming looks highly promising, with rapid technological progress and expanding practical applications. Growing demand and evolving technologies will continue to drive innovation and investment.

Within this framework, BV Portföy Joygame Pre-IPO GSYF and BV Portföy Gaming and Technology Variable Fund (BTE) offer unique opportunities for investors eager to capitalize on this rapid transformation.

  • BV Portföy Joygame Pre-IPO GSYF: Provides the chance to invest in Turkey’s leading gaming company, Joygame, which has grown 18x in the past two years, with over 100 million registered users and a diverse catalog of desktop and mobile games developed across 19 studios.

  • BV Portföy Gaming and Technology Variable Fund (BTE): Focuses on innovative companies in the technology and gaming ecosystem, aiming to maximize growth potential. By tracking sectoral trends and seizing related investment opportunities, it allows investors to participate in shaping the future of technology.