The Computer Entertainment Supplier’s Association (CESA) surveyed responses on whether or not the Japanese game industry should use generative AI programs. 51% of their Japan’s domestic developers responded, including Sega, Square Enix, and Capcom. Many view the technology as an advantage to speed up the game creation process. Others like to use it during the prototype stages, such as coding and idealization.
Yet, Nintendo and a handful of indie game developers have voiced their concerns. By researching the technology, they identified two key issues with generative AI. A distribution that questions intellectual property rights and the machines fully replacing human talent.
2023: Japan Introduced Generative AI
The first time Japan expressed its use of generative AI tools can be traced back to July 2023. Kyodo News reported that curious manga artists were training their programs to recreate Osamu Tezuka’s Black Jack.
Tezuka’s son, Makoto, supervised the project and understood the duration to adapt the manga’s art style. “[Our AI] won’t produce an end-product that excels the original Osuma Tezuka’s work,” he told the network, “But it would be considerable if the work scored 50% if achieved.” His family’s studio, Tezuka Productions Co., was later met with harsh criticism by both manga artists and enthusiasts. They view their actions as disrespectful to the late God of Manga.
Fast forward to December 2023, Professor Layton developer Level-5 has unveiled information about utilizing Stable Diffusion and Voicevox. President and CEO Akihiro Hino adapted his company to test and train these generative AI programs for their upcoming titles. Since July 2019, Level-5 Abby COO Yukari Hayakawa has informed gamers that their international divisions were operating with a small staff. It forced them to shut down later in August and remain with their Japanese headquarters.
Level-5 later announced their global return with a teaser of Professor Layton and the New World of Steam in Nintendo’s February 2023 Direct. Their international fandom became mostly disappointed after discovering generative AI in their November 2024 Level-5 Vision previews. The games in question were Holy Horror Mansion, Inzuma Eleven: Victory Road, and Decapolice. The accusations were later confirmed in an Automaton report.
What Do Developers Planned to Use AI For?
CESA shared a preview of Japan’s game industry 2025 report on how they will improve the industry’s pipeline. On Sept. 25th, 51% percent of developers have confirmed to use generative AI for various purposes. Many employees grew afraid of being replaced by the programs’ fast functions.
Square Enix President Takashi Kiryu followed Hino’s approach in 2024. He addressed in his New Year’s letter, “Changes are underway in digital entertainment. Artificial intelligence has the potential to not only reshape what we create, but also fundamentally change the processes by which we create, including programming.”
Later, Resident Evil developer Capcom discussed using the technology to speed up the idealization process on January 23rd, 2025. Monster Hunter World’s Kazuki Abe said, “[The process] is one of the most labor-intensive in game development.” They have even provided images of experimenting with image generation with Google Gemini.
And finally, Sega established their internal “Generative AI Committee” on Aug. 11th. Company representatives, Daishi Yokoshima and Atsuki Yagi, explained that their trained programs will be used in multiple tasks, but only during the prototype phase. They then stated, “We are entering an era where it’s impossible not to use AI. [We] believe that the coexistence of convenience and creativity is possible.”
Nintendo, on the other hand, is currently using a wait-and-see approach as the technology continues to progress faster than expected. Earlier this year, Shuntaro Furukawa expressed his feelings about the gaming industry adapting to generative AI. He said, “[The technology] can be used in creative ways, but we recognize it will raise issues on intellectual property rights.”
Mario creator Shigeru Miyamoto later added on Sept. 25th at the Tokyo Game Show 2025’s business day. “When everyone starts to use AI, Nintendo would rather go in a different direction.” Nintendo has taken precautions not to participate in adapting generative AI for its future game projects.
