Recent reports indicate that both PlayStation and Xbox are gradually incorporating generative AI into their game development workflows, despite the controversies surrounding its use. Data also shows that the use of generative AI in game development is growing rapidly, although major players like PlayStation and Xbox have been cautious about adopting it openly.
A report by The Game Post suggests that a newly established first-party PlayStation studio called Dark Outlaw Games has been looking to hire a concept artist experienced with generative AI tools such as Midjourney and ChatGPT. This move indicates that PlayStation is exploring the integration of AI into its game development processes.
Xbox Is Reportedly Using Generative AI in a Major Franchise
Meanwhile, insiders claim that Xbox has already begun integrating similar AI tools into Halo Studios‘ workflow, allegedly using them to build worlds and refine various aspects of upcoming Halo installments’ art. This suggests that Xbox is also embracing AI to enhance its game development capabilities.
These developments align with broader trends in the industry. According to a recent analysis, one in five games on Steam now uses generative AI, reflecting how the technology is becoming increasingly common, particularly among smaller studios. Valve’s storefront, home to countless indie titles, demonstrates how generative AI can be adopted more quickly when there’s less corporate risk and public scrutiny.
Indie developers also face less pressure than major video game companies when it comes to using AI. Still, the moves by PlayStation and Xbox indicate that even the biggest industry players are beginning to explore generative AI, despite the ongoing stigma and cautious approach.
Previously, several major video game companies, including Take-Two, CDPR, and EA, voiced concerns about using generative AI tools, mainly due to fears of backlash from fans. Nintendo, however, has taken a firm stance against the technology, with Shigeru Miyamoto confirming that the company has no plans to use AI.
Meanwhile, many developers have described these tools as “useful,” with some admitting they are hard to resist. For example, a key Battlefield 6 leader recently called generative AI a “seducing” tool, though they clarified that their team hasn’t used it to create any part of the game’s art or assets.

It’s worth noting that, unlike PlayStation’s Dark Outlaw Games, which is openly seeking AI experts, Xbox has not confirmed using AI in game development at Halo Studios. However, since its parent company, Microsoft, plans to invest billions in AI-based tools and technologies, it seems likely that first-party Xbox studios will adopt them soon to reduce costs or improve development efficiency.
What remains uncertain is how gamers will respond to these changes and whether the growing presence of AI-generated art in games will harm the industry or help it evolve.
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