Shaping the Future of Video Games

So, what do we have here? Another article about generative AI? That’s probably the first question that comes to mind. The short answer is yes, but it’s not quite as it might seem at first glance.

I wrote this article not to join the hype around generative AI, but in the hopes of sharing some valuable insights on the topic. My goal is to help practitioners make informed choices about their future, which (let's be honest) is already out there like a zombie apocalypse, and will soon be knocking on our door.

Founder and CEO Half Moon Studios and former Marketing Director of Miniclip Studios Peter Kooyman (Pieter Kooyman) recently shared his story with Mikhail, which I am happy to share with you in this article. Kooyman has 15 years of experience in the games industry, 13 of which he spent as a member of the management team at Miniclip before the company was acquired by Tencent. He is currently developing Half Moon Studios, which began by reimagining the Picture Quiz genre.

Half Moon Studios has a unique way of running their business. Their focus on carefully selecting investors and partners, as well as using AI to optimize operations, sets them apart from other studios. What’s also remarkable is that they don’t plan to expand their team beyond 10-12 people. AI is a key ingredient in achieving this impressive result. Let’s find out how they did it!

The full discussion can be heard here:

In the conversation, Peter reflects on the valuable advice he received from one of his investors early on in his journey. One piece of advice has stuck with him for a long time:

“Just get started. Start doing your own projects and learn. Make mistakes. Build an organization, develop your capabilities and don't stop.”

Half Moon Studios’ core principles are the result of rethinking marketing and workflows across the organization. Their business culture thrives on innovation, unencumbered by historical baggage. Rather than relying on tried-and-true methods, they explore the untapped potential of generative AI to create entirely new approaches to marketing and distribution.

They pride themselves on having assembled a small but well-coordinated team that, with the help of artificial intelligence, can perform as well as large corporate teams. Their approach prioritizes clarity in communication, maintaining a non-hierarchical, transparent structure where all team members are aware of what is happening, eliminating any possibility of misunderstanding.

Peter and Mikhail agreed that implementing such methods and tools in large organizations can have a number of obstacles. But operational difficulties associated with established processes should not hinder innovation. In fact, integrating generative AI is becoming much more challenging for larger companies.

While senior and middle management may be enthusiastic, the complexity of setting up processes can sometimes inhibit innovation.

Despite their heavy reliance on artificial intelligence, Peter is well aware of the challenges this approach poses.

He mentions the following challenges when working with AI tools:

• Conflicting results: Peter highlights the problem of unpredictable results based on his experience with Chat GPT, which often provided inaccurate information. He emphasizes that the future of humanity is not under immediate threat right now, as AI tools require constant tweaking, careful maintenance, and a relentless pursuit of perfection. Notably, up to 10% of AI-generated content may be factually incorrect.

• Bias: He also highlights the inherent biases in these models, which in turn stem from the biases in the data they were trained on. AI is not driven by ethical considerations; it is simply reflecting the data it is fed. Identifying and addressing these biases is vital to working with AI.

• Values ​​and Ethics: Another major challenge organizations face is the potential misalignment of AI-generated content with the organization’s core values ​​and ethics. As AI rapidly permeates industries, including gaming, companies need to remain vigilant and ensure that AI capabilities align harmoniously with their core values.

The debate about AI putting us all out of work

In today's gaming industry, where the cost of developing major AAA games is approaching the billion dollar mark, Executives are forced to consider artificial intelligence as a cost-cutting measure. Frankly, in the current situation they have no other alternative, nor indeed any financial reason to maintain the traditional approach to development. After all, the ability to produce more with less time and effort is entirely in line with their ultimate goal.

When it comes to the employees of these companies, we see their wariness growing. But can you blame them? It is clear that their suspicions are fueled by a lack of transparency in communication with management. They are understandably wary of the potential consequences of process optimization through the introduction of artificial intelligence, fearing that this could lead to the automation of their own jobs and the jobs of their colleagues, which ultimately poses a threat to their employment as such.

Leaders are faced with the challenge of communicating to employees the role of AI in optimizing processes without causing a revolt.. It’s like walking a tightrope; you have to communicate the truth about the future role of AI to your employees while avoiding panic. With employees clearly fearing layoffs and job changes, it can be challenging to maintain transparency in your communications. It may seem easier to give a more positive outlook, as this may reduce the level of negativity. However, discussing the possible consequences would be a fairer approach. Softening the truth will ultimately lead to more frustration among employees, as you deprive them of the opportunity to adapt to the new reality.

At the same time, artists, developers and creatives are forced to deal with their own form of this fear-driven outrage.

For now, AI is more like a helpful colleague, performing repetitive tasks and making our work easier. But in the future, it could completely take over some jobs, and the idea of ​​algorithms generating designs and constructions that used to require painstaking work is hard to stomach. This worry is fueled by the uncertainty of the coming changes to our professional lives.

It’s natural to feel uncertain about the future of AI, but we shouldn’t let it paralyze us. In fact, this uncertainty can spur innovation by inspiring us to learn new skills and view AI as a creative ally rather than a job stealer.

Job losses are certainly on the horizon. In the coming years, industries including gaming, legal, and marketing will see certain roles become obsolete as tasks that once took weeks can now be completed in hours.

On the other hand, almost all industries suffer from a shortage of personnel. If AI can reduce the time spent on routine tasks, people will have more time to work on the more interesting parts of the project.

However, there is a major problem with the entry of young professionals into these industries. When companies start hiring fewer people, this will limit opportunities for newcomers, especially in large firms, which is a major problem for young professionals.

Improving efficiency through collaboration between humans and artificial intelligence

One of the key hiring principles at Half Moon Studio is their “multi-hat policy,” which in this context represents an employee's roles and responsibilities within the company. Peter states that every team member wears at least two hats, which is an important hiring criterion. This philosophy places a strong emphasis on versatility and adaptability, ensuring that professionals can easily switch between roles and areas of work.

For example, imagine a data analyst who is not only great at analyzing data, but also has the skills to create effective data processing systems.

Peter strongly emphasizes the superiority of generalism over specialization, stating:

“Generalism will beat specialization. If you are a beginner developer, you should think about what additional skills you can learn right now.”

I believe the emphasis is not on downplaying the merits of specialists, but on recognizing the value of versatile professionals in an industry characterized by constant change and automation. Professionals who take this approach can make themselves super-adaptable in an industry that is always in flux.

This is where generative AI tools come into play – like trusted assistants, they take over routine tasks, create content, and provide valuable insights. The synergy between humans and AI is the spark that ignites efficiency and innovation.

So what pearls of wisdom can Peter offer fellow professionals, especially game developers, diving into the field of AI?

• Deep Dive
  Peter emphasizes that when it comes to artificial intelligence, you can’t just scratch the surface; you have to dive into the depths. It’s like conducting an orchestra of AI systems, each with its own role in a grand symphony. He thinks of it this way: “You have one AI system that automates certain tasks, and another generative AI system, and another type three system, and so on, and you’re trying to connect them together.” In other words, it’s about getting to the bottom of it and understanding how these components work together in the best possible way.

• Automation
  Automation is a key aspect of leveraging the power of AI. Peter believes that game developers and other professionals should wholeheartedly welcome automation into their workflows to improve their productivity first and foremost. Generative AI creates a huge amount of content, but not all of it will be perfect for your needs. Imagine being in a huge treasure trove and being able to take whatever you want from it. You can either fill your pockets with small change that will do little good, or you can find those precious gems that will fit perfectly with your product, processes, and marketing strategy.

• Healthy skepticism is wise
  Peter stresses the importance of maintaining a healthy skepticism when working with AI-generated content. Despite their incredible capabilities, AI tools have their limits. He advises taking a critical look at the content you generate, whether it’s an article or a marketing campaign. AI is great at recognizing patterns, but it’s important to make sure the content is aligned with your goals. So be extra vigilant, especially in the early stages of integrating AI. As Peter says, “you need to do a ‘smell test’ of your content.” The key is to make sure the AI’s broad capabilities align with your goals.

Conclusion

In many ways, generative AI is another tool that teams small and large can use to do amazing things. Its potential to revolutionize the industry is undeniable, but AI adoption is a double-edged sword. Ethical dilemmas, risks, inconsistencies, and a blow to traditional studio structures pose serious challenges despite the enormous promise.

Mikhail insightfully characterizes the organic nature of AI as the ability to quickly and cost-effectively produce high-quality content, while noting that AI as an assistant will reduce the need for human assistants.

Established industry giants may face challenges adapting to the new landscape due to the impact of AI on their large workforces. This gives smaller studios an opportunity to level the playing field by bringing innovation and dynamism to the industry.

In this rapidly evolving landscape, we are faced with a choice. Should these achievements be perceived as a source of new opportunities or as a source of concern??

For some, especially smaller studios, this is a clear opportunity to make games and products with limited resources but at an accelerated pace, seizing the moment rather than being caught up in it. For others, it means disrupting the way they work. Whichever side of the spectrum you find yourself on, the smart thing to do is embrace this shift as soon as possible.

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