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Josef Fares gesturing passionately in an interview, warning against overemphasizing AA games, with Clair Obscur and AAA elements in the background.
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Josef Fares warns against overemphasizing AA games after Clair Obscur success

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Josef Fares, director of Split Fiction, has cautioned the gaming industry against fixating on double-A titles following the success of Clair Obscur: Expedition 33. In a recent interview, he emphasized the need for diversity in game publishing, including triple-A blockbusters. Fares also defended publisher EA and expressed skepticism about generative AI's future role in development.

Capcom has stated it will not include AI-generated materials in its game content, as revealed in an investor briefing on March 23, 2026. The company plans to use AI tools to improve efficiency in development processes like graphics, sound, and programming. This comes amid backlash over Nvidia's DLSS 5 implementation in Resident Evil Requiem.

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Steam's February 2026 Next Fest has drawn criticism from players and developers over a flood of demos featuring generative AI art without proper disclosure. Community members are resorting to sorting by popularity to avoid low-quality content, undermining the event's purpose of showcasing indie titles. Valve's disclosure system for AI use appears ineffective, leading to both genuine misuse and false accusations against legitimate creators.

Larian Studios CEO Swen Vincke, in a January 10, 2026 Reddit AMA, reaffirmed the studio's decision to halt generative AI use in concept art for its upcoming Divinity game amid fan backlash—previously covered in early reports—and shared extensive new details on the title's setting, features, and development.

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Larian Studios has reversed its approach to generative AI for its upcoming game Divinity following fan backlash. In a Reddit AMA, CEO Swen Vincke announced the studio will avoid AI tools entirely during concept art development to eliminate doubts about art origins. The decision extends to writing, ensuring all creative assets remain fully human-made.

Ubisoft revealed Teammates, a first-person shooter prototype powered by generative AI, during its November 21, 2025, investor presentation. The demo features AI companions that respond to voice commands in real-time, aiming to create more interactive gameplay. CEO Yves Guillemot described generative AI as a revolution comparable to the shift to 3D graphics.

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Square Enix has announced a partnership with the University of Tokyo's Matsuo-Iwasawa Laboratory to automate 70% of its quality assurance and debugging tasks using generative AI by the end of 2027. This initiative aims to boost efficiency in game development and gain a competitive edge. The plan emerges from the company's medium-term business strategy amid broader AI adoption in the industry.

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