- According to a report from CESA, 51% of the game developers in Japan use generative AI for development.
- Almost 32% of the studios surveyed are using AI to develop game engines in-house.
- Big hitters and indie studios alike are using the technology to generate text, assets, and storylines.
Generative AI and its use in gaming is a hotly contested debate in the industry now, with major companies like Microsoft restructuring their entire workforce to fit the AI mould, with competitors like Sony also following suit.
Many developers have clearly stated that AI is the future of the industry and that its use is only going to increase. From the looks of it, however, the age of AI is already gearing up in the background as the debate rages on.
Why it matters: Generative AI usage at such a large scale in Japan is alarming, as this poses a massive threat to talented developers, not to mention cutting costs, thanks to AI adoption.
According to Japan’s CESA, the organization that organizes the Tokyo Game Show, approximately 51% of companies in Japan utilize generative AI to support development.
This info comes from the 2025 CESA video game industry report that includes specific insights into how much domestic companies use AI.
CESA collected this data from approximately 54 gaming studios in June and July 2025, with the most common use of AI by developers being for the creation of visual assets, such as character images. Furthermore, developers are also employing AI for the creation of in-house engines.
Roughly 32% of studios are utilizing the technology to develop game engines, ranging from big hitters like Capcom to smaller indie studios. According to the report, Japanese studios are also utilizing Generative AI for story and text generation, in addition to asset creation.
Considering how major Japanese companies like Sega and Square Enix have recently announced plans to utilize generative AI for future projects, these numbers aren’t that surprising.
AI is becoming the norm with every passing day, and it won’t be long before every game in the world utilizes the technology, rather than just one out of five titles on Steam.
Do you agree with the use of generative AI on such a widespread scale? Tell us in the comments below or head to the Tech4Gamers forum for discussion.
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Shameer Sarfaraz has previously worked for eXputer as a Senior News Writer for several years. Now with Tech4Gamers, he loves to devoutly keep up with the latest gaming and entertainment industries. He has a Bachelor’s Degree in Computer Science and years of experience reporting on games. Besides his passion for breaking news stories, Shahmeer loves spending his leisure time farming away in Stardew Valley. VGC, IGN, GameSpot, Game Rant, TheGamer, GamingBolt, The Verge, NME, Metro, Dot Esports, GameByte, Kotaku Australia, PC Gamer, and more have cited his articles.
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