AI Infiltrating Japanese Video Game Studios

by Jonathan Dubinski September 30, 2025

written by Jonathan Dubinski September 30, 2025

Key Takeaways

Created with AI - we're still experimenting, so apologies if it misses the mark

Over half of Japanese video game development studios are currently using AI in their processes, primarily for tasks like generating images, characters, and text, as well as programming assistance.
Major publishers such as Capcom, Konami, FromSoftware, Square Enix, Sega, and numerous smaller studios have begun integrating AI into their development.
Companies like Square Enix, Level-5, and Capcom have publicly shared their AI experiments in games like Foamstars and Stable Diffusion.
While many companies are embracing AI, others like Nintendo approach it cautiously to preserve their unique creative identity, as exemplified by Shigeru Miyamotos comments last year. The final report from the Computer Entertainment Suppliers Association will be released in December, further detailing the extent of AI integration in Japanese game studios.

AI Revolutionizing Japanese Game Development Studios

Over half of Japan’s video game development studios are already utilizing artificial intelligence (AI) in their game creation processes. This finding comes from a preliminary report by the Computer Entertainment Supplier’s Association (CESA), organizers of the Tokyo Game Show. Most studios are employing AI for tasks such as generating images, characters, and text, as well as assisting with programming. Notably, approximately 32 studios are actively testing AI to build their own game engines. Major publishers and developers, including Capcom, Konami, FromSoftware, Square Enix, and Sega, alongside numerous smaller studios, have embraced AI integration. Some have been transparent about their work: Square Enix is experimenting with AI in Foamstars, Level-5 has explored Stable Diffusion, and Capcom is running its own AI experiments. Sega has even established a dedicated AI team. However, not all companies are fully committed. Nintendo is approaching AI cautiously, prioritizing the preservation of its unique creative identity, as expressed by Shigeru Miyamoto last year. The final CESA report is scheduled for release in December. The preliminary findings suggest that AI is poised to become an increasingly integral and widespread tool within Japanese game studios in the coming years.

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