AI cut the cost of developing games while the AAA industry is going through a major crisis
The authors of the new study call the period of 2024-2026 the deepest AAA segment decline in the modern history of the gaming industry.
According to the researchers, one of the main reasons was the rapid decline in production costs due to AI. This was particularly evident during the production planning phase.
According to the study, work that was previously done by a producer with an hourly rate of about $59, is now generated by AI in an average of 5.1 minutes and costs only $0.270.58.
At the same time, the number of Steam releases increased from 9,654 in 2020 to more than 20,000 in 2025, while only about 300 games managed to earn over $1 million. Researchers believe the market is moving rapidly towards overload, and the traditional development model is experiencing a serious crisis.
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