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TLDR

As a gamer myself, it’s fascinating to witness the history of gaming development, how it eventually evolved to this behemoth of $~100B in 2024. A quick rundown of the history as I see it:

↳ Starting from PC dominance, IBM PCs, Apple II, and later DOS-based systems brought 8-bit and 16-bit games, paving the way for classics like Doom (1993)

↳ Console games enter the space to fill in the gaps of portability (Nintendo) that the then complex PC did not offer

↳ The internet era opened doors to online gaming, gradually converging gamers to communities like the World of Warcraft, League of Legends, etc.

↳ Mobile games to the rise (Angry Bird, Candy Crush) reaching the largest audience base ever. It broke down barriers, making games accessible to everyone and anyone with a smartphone.

↳ Cloud gaming, using high-end infrastructures to bring high-quality gaming to users without expensive hardwares

And now here we are, at yet another pivotal point in time, where we are seeing new transformations driven by AI. The snippet from a report on the effect of AI on gaming serves as a lighthouse for what may come next.

At a high-level, the report predicts that AR and VR are the key drivers shaping the gaming. These technologies are transforming how players interact, offering immersive, engaging experiences. AI, meanwhile, takes a supporting role, enhancing these interactions but staying in the background rather than being the main focus. Think of it as enriching the stage rather than stealing the spotlight.

I conquer with the report’s point of view, but think we should add more color to it for the extra specifics that a gamer like me will appreciate.

Let’s take a look at what’s going on lately first.

What’s AI doing with gaming lately?

AI-powered NPC

Non-playable characters (NPCs) will become significantly more intelligent, interacting with players in more natural ways.

The image highlights results from a Stanford study where researchers created a virtual town populated by NPCs (non-playable characters) capable of independent thought and behavior. These NPCs don’t just act—they evolve. Each has dynamic properties like mood, relationships, and goals, which change as they interact and progress through the game. This led to unpredictable, often hilarious moments that feel remarkably lifelike.

Infinite plot generated by AI

The user can interact with the generative game using natural language, and character’s meters / properties update accordingly. A spontaneous and unconstrained story unfolds while the user plays, and the character can explore new environments with a myriad of possible actions and unexpected interactions. The game runs in interactive speeds, refreshing every second.

Genesis AI

Now bringing it to a whole new level. We thought Oasis with its Minecraft like world generation was the state-of-the-art. Until it got smoked by some big guns.

Merging this and the infinite plot application, we become the Creators ourselves.

The Next: Hold on to my Crystal Ball

Now back to our thoughts on the evolution of AI in gaming. We expect it to unfold in three key stages:

• Short-term / Pilot stage
  We will see experimental adoption of LLM and AI agents into NPC and companions. These implementations will be basic, as gamers, though familiar with Open World games like Elden Ring and Breath of the Wild, are not yet accustomed to concepts like Open Plot or Unlimited World gameplay. Without a clear structure, such games risk losing focus and delivering subpar experiences.
  
  In short, while progress will begin, don’t expect groundbreaking changes just yet; the ecosystem isn’t fully prepared.

• Mid-term / Experience stage
  As hardware capabilities improve and AR/VR technologies mature, games will start introducing truly interactive experiences. Enhanced AI models will offer better performance at lower costs, driving innovation.
  
  However, the balance between delivering immersive experiences and keeping costs manageable will be critical. Companies will face turbulence as they adapt to these shifts, with financial feasibility becoming a key determinant of success.
  
  This stage will also test the limits of current gaming infrastructure—networks, gaming engines, device hardwares—to assess their ability to sustain AI-driven experiences.

• Long-term / Imaginative stage
  This is the era where gaming transcends traditional boundaries. Games will evolve into expansive, limitless simulations, constrained only by the creator's imagination. Worlds won’t just be built—they’ll be alive, with dynamic ecosystems and narratives shaped entirely by players.

Can’t wait to make my own Soul Series!

Food of Thought

Why so serious?