Over half of Japanese game companies are leveraging artificial intelligence in their development processes, as revealed by a preview of the Computer Entertainment Supplier’s Association (CESA) 2025 Video Game Industry Report.
The findings, based on a survey of 54 Japanese game companies including notable CESA members such as Capcom, Konami, FromSoftware, Square Enix, and Sega, indicate that 51 percent of the surveyed companies are utilizing AI. The most common applications of AI include generating visual assets and character images, creating stories and text, and providing programming support. Additionally, the data showed that 32 percent of these companies are employing AI to help develop their own game engines. The full report is slated for release in early December.
Several Japanese game companies have been forthcoming about their adoption of AI. In early 2024, Square Enix CEO Takashi Kiryu announced that the company would be “aggressive in applying AI,” with developers later admitting they had “dabbled” with it for the game Foamstars. In 2023, Automaton reported that Level-5, the studio behind Professor Layton, utilized the AI tool Stable Diffusion. Capcom was also found to be experimenting with generative AI earlier in 2024, while Sega has established an in-house AI team to further its development.
In contrast, Nintendo, which is not a CESA member, has publicly expressed its opposition to using AI for creative purposes. Shigeru Miyamoto, Nintendo’s creative fellow, stated that the company would “rather go in a different direction” to preserve originality. The use of AI was also a frequent topic of discussion at Gamescom in 2024, with many independent studios describing it as an invaluable tool for development.




