The CEO of Shift Up says they need AI because of the Chinese Boogeyman

The CEO of Shift Up says they need AI because of the Chinese Boogeyman

3 minutes, 35 seconds Read

of the you-don’t-help dept

In my previous posts about the use of generative AI tools in the video game industry, I tried to make the point that a nuanced conversation is needed here. Predictably, there were a lot of comments of the kind of layered opinions I was specifically trying to avoid, but I always knew they would be there. And that’s okay. Where there is novelty, there is disruption and discomfort. And honestly, some of the dangers here are not unfounded.

But ultimately I remain of the opinion that generative AI shall be a tool used by game developers in general in the future, if not the present. I also still firmly believe that the conversation we should be having is not or AI should be used in games, but How it must be used.

And people like the CEO of Shift Up in South Korea certainly don’t help when they emphasize the need to use AI by trotting out the Chinese boogeyman.

Will gen AI be part of Stellar Blade 2’s development? It doesn’t sound completely out of the realm of possibility, after recent comments from the CEO of developer Shift Up. The South Korean game studio is currently working on a sequel to the 2024 sci-fi action game and the boss thinks AI is the only way to compete with the huge development teams coming out of China.

“We spend about 150 people on one game, but China puts between 1,000 and 2,000,” Hyung-tae Kim, who was also director of Stellar Blade, said at a recent conference briefing, according to to GameMeca (translated via Automaten). “We lack the ability to compete, both in terms of quality and volume of content.”

Where do I even start with this nonsense? First, it is completely devoid of the nuance I was asking for in these types of discussions. This essentially means that developers can make up for the enormous human assets China can bring to bear in game development by using AI to make up the difference. One employee using AI, if you do the calculations, could be the equivalent of about a hundred Chinese employees. That sounds like you want to prevent hiring by using AI, but it won’t help!

Somehow it is also not recognized that generative AI can also be used in China. China isn’t exactly ignoring AI tools, you know, so there’s no point in this arms race.

After all, it’s just a bit of nonsense. Chinese studios have certainly produced a number of games, some of which have been quite successful. But when we think about the major players in the video game industry, especially in terms of quality and revenue, China is only a fairly average player on the world stage. Tencent, NetEase and MiHoYo all crack the top ten in terms of turnoverbut the rest of the longer list is filled with American, Japanese and South Korean studios, among others. They are certainly a player in the industry. But they are not a dominant force that requires special tactics to compete with.

But despite all of the above, Shift Up has been successful and has committed to retaining and treating its workforce well.

Was Kim actually worried about increasing competition from China, or was he merely flexing his geopolitical muscle as Stellar Blade’s popularity catapulted Shift Up to the top? After all, that game sold millions of copies console and PC without the help of AI, even as Tencent, Net Ease and other major Chinese publishers flood the market with free AAA games.

At least for the time being, Shift Up employees are being well taken care of. Seoul Economic Journal recently reported that all 300 employees at the studio received AirPods Max, Apple Watches and a $3,400 bonus to celebrate the company’s profitable 2025. Why not video game consoles? It has already donated PS5 Pros and Switch 2s last year.

That certainly doesn’t read like a studio in trouble because of the scary Big Red Machine or whatever it’s trying to pitch. How about you keep making good games and everything will be fine?

Then we can get back to the real, more nuanced conversation about exactly what place AI has in video game production.

Filed Under: ai, china, generative ai, hyung-tae kim, stellar blade, video game development, video games

Companies: move up

#CEO #Shift #Chinese #Boogeyman

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