Pixel P&L: The Realities of Generative AI in Video Games

Good Morning. It’s Tuesday, July 23. Today, we delve into the transformative potential of generative AI in the video game industry, examining its current impact and future prospects. We also cover Evo's expansion to Singapore and Ampverse's new partnership with Orangutan Gaming, amongst other stories.

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Generative Artificial Intelligence (AI) is taking the gaming world by storm, but is it all it's cracked up to be? At the Game Developers Conference 2024 in San Francisco, the buzz was all about AI tools promising to revolutionize game creation. A staggering 31% of the 3,000+ developers surveyed are already harnessing AI for coding and content, with indie developers leading the charge.

But hold on—despite the hype, generative AI is hitting major roadblocks. Developers complain about buggy, unreliable tools that fail on complex projects. Financial instability among AI providers like Stability AI and Anthropic adds to the chaos, with massive losses threatening their survival.

And it gets worse. Legal battles are heating up, with giants like Getty Images and major music labels suing AI firms for unauthorized data use. Ethical concerns and public backlash are mounting, as gamers reject AI-generated content for lacking human touch.

In our latest feature, we explore whether generative AI is the game-changer we've been promised, or just the latest fad doomed to fade? 

The Evolution Championship Series (Evo), renowned for its competitive fighting game tournaments, is broadening its global reach with new locations announced for the coming years. During a live stage event, Rick Thiher, General Manager of Evo, unveiled plans to host the event in several new cities, including Los Angeles in February 2025 and Nice, France in October 2025.

The most notable announcement, however, is Evo's decision to bring the prestigious tournament to Singapore in 2026. The exact dates are yet to be determined, but this decision highlights EVO's commitment to broadening its global reach and engaging with diverse gaming communities.

Additionally, EVO is set to return to Los Angeles in February 2025 for the EVO Awards and will host its traditional Las Vegas event from August 1 to 3, 2025. Prior to Las Vegas, EVO Tokyo will take place from May 9 to 11, 2025, further emphasizing the series' international expansion.

These announcements signal EVO's dedication to cultivating a worldwide fighting game community, offering new platforms for players and fans to connect.

Honor of Kings Surpasses 50 Million Global Downloads in a Month

Publisher Level Infinite announced that Honor of Kings surpassed 50 million downloads outside of China within a month of its global debut, though it's unclear if this includes downloads from its soft launch markets. TiMi Studios released Honor of Kings worldwide on June 20, 2024, for iOS and Android, presenting a thoroughly westernized version of the Chinese original to a global audience.

ESFI Launches NESC24 as Qualifier for AIMAG Esports in Thailand

The Esports Federation of India (ESFI) has opened registrations for the National Esports Championship 2024 (NESC24), which will serve as the qualifier for the esports event at the 6th Asian Indoor and Martial Arts Games (AIMAG) in Thailand. AIMAG, scheduled from November 23-28, 2024, in Chonburi, will feature esports as a medal event, including Mobile Legends Bang Bang, Arena of Valor, and eFootball. Due to local bans, India will compete only in the eFootball category.

Ampverse DMI's College Rivals Forms Strategic Alliance with Orangutan

India's largest Collegiate Esports IP, College Rivals, owned by Ampverse DMI, has partnered with leading esports organization Orangutan. College Rivals awarded its inaugural professional gaming contract to Sahil Nagpal, a student from Jalandhar, Punjab, for his exceptional performance during Season 1. Nagpal will join Orangutan’s Academy BGMI team, inspiring aspiring gamers nationwide. Ashwin Haryani, Country Head of Ampverse DMI, highlighted the partnership's goal of building a talent pipeline and enriching the esports ecosystem. The alliance will feature the co-owned youth team Rivals Ape X, including standout players from College Rivals seasons. College Rivals Season 2 will feature over 50 colleges competing across 22 cities in BGMI, Valorant, and EA FC 24, culminating in a grand finale in February 2025 with a ₹50,00,000 prize pool.

Konvoy Ventures Report Highlights Struggles in Games Industry Funding

Konvoy Ventures reports that while the games industry has growth potential, funding has yet to recover. In the first half of 2024, private funding for games reached $2.89 billion, slightly exceeding 2023's total of $2.80 billion, primarily due to Disney’s $1.5 billion investment in Epic Games. Excluding this outlier, H1 2024’s funding stands at $1.39 billion, down 9% year-over-year. Venture capital funding also continues to decline, with $492 million invested in Q2 2024, down 20% from Q1 and 7% from Q2 2023. The first half of 2024's VC funding, totaling $1.09 billion, marks a 20% drop from the same period in 2023.

Russian Chess Grandmaster Ian Nepomniachtchi Won a Dota Tournament in 2011.

Ian Nepomniachtchi, renowned for his prowess on the chessboard, has an unexpected accolade in the world of esports. In 2011, the Russian chess grandmaster showcased his versatility by winning the ASUS Winter 2011 Dota tournament. Competing alongside future Dota 2 professionals, including Vladimir "PGG" Anosov, Nepomniachtchi demonstrated that his strategic thinking transcends traditional boundaries.