While we’ve already talked about the moves and restructuring within Embracer Group, the giant of the video game industry, there is no shortage of additional news. Indeed, with the financial report published on June 20, 2024. A report which shows the activity of Embracer through its studios, but also projects for the future. Projects that seem to leverage the power of artificial intelligence.
Embracer Group is all about AI – AI with humans at the center
If we discussed the restructuring of Embracer Group into 3 groups in the April article, with even more recent news of the closure of famous video game studios, there is other news on this subject. In the recent financial report for 2023-2024, Embracer Group presents the report of the year. Let’s talk about the success and potential of the various studios still in place, such as: THQ Nordic, PLAION, Coffee Stain, Crystal Dynamics-Eidos, Dark Horse Media, and many others. For a total of well over 900 franchises in the hands of the giant, with 106 development studios spread across more than 40 countries. A significant part of the report also discusses the restructuring of the group into 3 gaming giants based on genre type and quality of games.
In the same report, an entire section is also dedicated to AI. Wide adoption of AI through the “Group AI Policy”, in which Embracer studies and implements the use of AI in the development phase of games. This is also thanks to the capital coming from the sale of Saber Interactive and Gearbox, a sale amounting to approximately 700 million dollars, less than half of which will go to repay the debt of approximately 1.5 billion which they have accumulated until ‘now. An AI that, according to Embracer, will always have humans at the center and will be seen as a powerful tool at their disposal and which will play an even more important role in the future. And as Tomas Hedman, Head of Privacy and AI Governance, said, failing to take advantage of AI will be one of the biggest risks for the business in the near future.
The risks, criticisms and impact of artificial intelligence on the future of games
A statement certainly valid from a financial point of view, but also quite questionable given that with the recent restructuring several important video game studios have been closed. An AI that should have humans at the center, but has seen the company lay off more than 1,500 employees, or well over 10% of the total staff. If the financial report is, as is now clear, primarily intended to reassure investors and attract new ones, AI certainly represents a very strong word in the financial market. But in the world of video games, particularly in recent years, the use of generative AI has often been the subject of strong criticism, particularly from players. The main cause is the fear that many talents in the artistic field will be replaced by AI models trained for tasks not only audio and visual, but also narrative scripting. And some statements from the group do not reassure on this front, speaking of an AI that will be used in the creative process of the games, with “correction” of inconsistencies and errors in the script, and obviously in the visual development and control of quality.
Although Embracer talks about the future as a “win-win” situation for development and players, the latter are not very happy to hear these ideas in the face of massive layoffs, liquidations and studios development that closes. Especially in connection with the lack of adequate regulations to maintain a balance between the human impact and the artificial impact of products created with AI. With the fear of seeing more generic products, of poor quality and with plagiarized content, even more than what we have unfortunately seen in recent years from AAA and even AA studios. We will therefore have to closely observe how the situation will evolve within Embracer Group and the video games that the group will produce in the years to come.
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