Former Nexon CEO Says AAA Games Are In End-of-Days And AI Is About To Rewrite Everything

"Veteran games executive and former Nexon CEO, Owen Mahoney, believes the video game industry is on the cusp of a massive transformation--and that AI is at the center of it. He argues that AI is already integrated into many aspects of game development, from asset production to testing tools, and that its impact will only intensify. In an interview with The Game Business, Mahoney explains that the AAA sector is facing what he bluntly calls an "end-of-days" moment."

"Responding to examples of failed studios with prestigious founders, Mahoney says, "The examples that you just gave were, 'We bought this company because five years ago they made some game. So, therefore they're good.' It doesn't work that way at all," and insists that the "game companies are really just collections of people." He believes that success depends on understanding their motivation and creative drive, not past hits."

""You're running a $23 billion company. And you have to make a decision, in a very short period of time, to greenlight a project ... if that new project doesn't do well, you're going to be explaining to your board why you burnt $300 million in company cash," he said. He continues that one failure is survivable, but "if you do it again, they're going to be calling openly for your head, and by the third time you'll have an activist investor.""

The video game industry faces rising costs, slower development cycles, and increasing publisher risk aversion that threaten traditional AAA production. AI is already embedded in asset creation, testing, and other development processes and is expected to play an ever-larger role. Acquisitions based on past hits often fail because game companies are collections of people whose motivation and creative drive determine future success. Public-company executives face intense pressure when greenlighting billion-dollar projects, which encourages funding familiar ideas and deepens structural problems. Despite these challenges, AI offers potential new efficiencies and creative opportunities for the industry.

Read at GameSpot