The Battle for the Future of Gaming

Matt Cost discusses how AI is reshaping the video game industry. He expects AI to cut game development costs by over 40%, but increased competition may offset savings. Established companies with strong IP and live operations moats are better positioned. AI may also unlock new interactive experiences. - American spend 22 minutes per day gaming, more than socializing or reading. - Global video game spending expected to exceed $275 billion in 2026. - AI could reduce game development costs by roughly $22 billion annually. - More than 90% of game development cost is people; AI boosts productivity. - Cost savings may be reinvested into marketing due to increased competition. - Established studios with strong IP, live operations, and distribution are insulated. - Great gameplay remains hard for AI to replicate consistently.