Japanese Gaming Industry Embraces AI with Caution

A new report from Japan's Computer Entertainment Suppliers Association (CESA) reveals that 51% of Japanese game companies have incorporated artificial intelligence into their development processes. The survey, conducted between June and July 2025, included participation from major studios like Capcom, Square Enix, and Sega, alongside independent developers.

Widespread Adoption Across Development Stages

The findings show AI being deployed for:

• Visual asset generation (character designs, environments)
• Narrative development (story plots, dialogue)
• Programming assistance (code generation, debugging)
• Game engine development (32% of respondents)

"The speed of adoption has surprised many," noted a CESA spokesperson. "While global discussions about AI in gaming have been ongoing, seeing over half the industry actively using these tools marks a significant milestone."

Industry Leaders Take Divergent Paths

Companies like Level-5 have integrated AI across multiple production phases:

• Image enhancement through super-resolution processing
• Automated character concept generation
• Procedural code creation

However, Nintendo has taken a notably cautious stance. The Kyoto-based company stated: "Given ongoing copyright uncertainties surrounding generative AI outputs, we're maintaining our traditional development approaches for now." This position aligns with Nintendo's historic emphasis on intellectual property protection.

The Human Creativity Debate

The survey highlights growing industry tensions:

• Pro-AI factions emphasize efficiency gains in repetitive tasks
• Traditionalists warn against over-reliance that might diminish artistic quality

The CEO of Larian Studios commented: "We view AI as a productivity tool, not a replacement for human creativity. In fact, we've recently expanded our concept art team by 15 members."

Key Points:

✅ 51% adoption rate: Majority of Japanese studios now use AI in some capacity
⚠️ Copyright concerns: Nintendo avoids generative AI citing legal uncertainties
🎨 Creative balance: Industry divided on appropriate applications for the technology