A forecast said the global gaming industry could generate additional revenue of 32 trillion won through expense-cutting effects using artificial intelligence (AI).
According to Reuters on the 22nd, Morgan Stanley said in a recent report that AI tools could cut game development expense by up to half, allowing game companies to secure an additional $22 billion (about 32 trillion won) in revenue.
The report said global game consumer spending this year amounts to about $275 billion (about 407 trillion won). Of that, around $55 billion (about 81 trillion won) is expected to be reinvested in development and operations.
Morgan Stanley pointed to Tencent, Sony, Roblox, Take-Two, Electronic Arts Inc. (EA), and Ubisoft as corporations positioned to benefit from the AI transition. In contrast, it said Korea-based game company Netmarble could face difficulties.
Morgan Stanley said, "If AI lowers the production expense of mid-sized games and competition intensifies, corporations with weaker franchise competitiveness could face greater pressure."
It also projected that AI will keep users engaged in games for longer periods, boosting additional content consumption and in-game payments, and expanding subscription service expenditure.
It added that game publishers should shift focus from relying on new releases to upgrading existing franchises with AI-based content to mitigate financial shocks.