🔥🔥🔥 GameOver: AI sucks, Ubisoft IP Carveout sucks, Netflix Games sucks
Dang so negative, geez! This week, let's appreciate a great week of GDC while our hot take authors seem like they are in bad moods, lol.
OMG, I love GDC, but man, it was a massive time sink. Always great to get a pulse on the industry, but it’s more important than ever to get locked back in on execution.
Stay tuned next week for GDC key takeaways, but… not lame superficial takes, lol.
This week’s hot takes:
If AI’s so good where is it?
Ubisoft's IP Carve-Out: Cash Grab, Not a Comeback
Netflix Games: A Tourist in an Industry That Eats Tourists
I just gotta say ouch… Don’t hate me, I’m just the messenger people!!! And no, I will not tell you who the pseudonyms are.
1. If AI’s So Good, Where Is It?
If AI were capable of solving a really big problem in games, why hasn’t anyone pointed at what it is? Or do AI maxis think that the real problem in games is that they have to pay people to make them, and their perfect game is the one that makes +40% margins on their burn rate of 2 people, an AWS account, and an OpenAI API key?
JK Note: AI maxi here, but I love hearing (and posting) different takes from my own. Please submit whatever hot take you have!
2. Ubisoft's IP Carve-Out: Cash Grab, Not a Comeback
The latest news that Ubisoft is considering carving off some of its top IP - including Assassin’s Creed - into a separate entity to attract direct investment into that entity seems like the latest effort to test the waters of deal structures that don’t go far enough to actually bring a long-term fix for the company’s issues.
Although a carved out entity that just contains IP could in theory capture a better valuation multiple than the entire organization, this is just a band aid, not a fix to the foundation for Ubisoft.
The challenge is that the right move here for Ubisoft is to make much deeper cuts than it has to date. The company needs to severely right-size to focus on its top titles from which it can drive sustainable profitability. Additionally, there needs to be top-down drastic changes across the organization to fix the longstanding issues around quality and execution.
Carving out IP to bring in some cash can help float the ship a bit longer but is not a long term fix for these structural issues.
3. Netflix Games: A Tourist in an Industry That Eats Tourists
Netflix is diving into gaming with all the grace of a bull in a china shop. Their plan? Narrative games and party titles. Their strategy? Hope people care. It’s like watching Blockbuster try to sell DVDs in 2008—too little, too late.
They say they want to “disrupt” the gaming industry. Translation: churn out low-stakes, low-vision games for a user base that doesn’t even know the tab exists. No killer app. No standout IP. Just vibes—and a controller.
This isn’t innovation. It’s a content landfill waiting to happen. Remember Google Stadia? Exactly.
Gaming is brutal, competitive, and unforgiving. And Netflix? They’re just another clueless tourist wandering into an overcrowded arcade—thinking they’re building the next Nintendo because they once shipped Bandersnatch.
* Pseudonyms in italics, no underline.
Do you have a weekly hot take you’d like to submit?
Top 5 Gaming News
Netflix Unveils Refined Gaming Strategy (The Verge): Netflix's new president, Alain Tascan, has restructured its gaming approach, focusing on narrative games, multiplayer party games, kids' games, and mainstream titles. Plans include launching TV-focused games controlled via smartphones by year's end.
Pokémon Go's Future Under Scopely Ownership (Polygon) – Michael Steranka, senior product director for Pokémon Go, addresses concerns following Niantic's sale of its games division to Scopely for $3.5 billion, assuring fans that the core experience and in-person events will remain unchanged.
Game Informer Ceases Publication After 33 Years (Game Informer) – After over three decades of delivering gaming news and reviews, Game Informer has announced its closure, marking the end of an era for the publication.
'Grand Theft Auto VI' Poised to Break Sales Records (Financial Times) – Take-Two Interactive's upcoming release of Grand Theft Auto VI is projected to generate $3.2 billion in its first year, despite a general slowdown in the gaming industry.
Phil Spencer Hints at More Xbox Adaptations (VGChartz) – Xbox head Phil Spencer suggests that fans can expect more movies and TV shows based on Xbox intellectual properties in the future.
Top 5 AI x Gaming News
Razer Introduces AI QA Copilot to Enhance Game Development (PC Gamer) – Razer has unveiled AI QA Copilot, an AI-driven quality assurance tool designed to assist game developers in identifying and tracking bugs more efficiently. This innovation aims to improve game development processes, potentially leading to a better gaming experience for players.
Tencent's Gaming Revenue Boosted by AI Investments (The Wall Street Journal) – Tencent Holdings reported a significant profit increase, driven by robust growth in its gaming business and substantial investments in AI technology. The company's revenue rose by 11% year over year, marking its fastest growth rate in over a year.
Ark: Survival Evolved Fans Criticize AI-Generated DLC Trailer (Polygon) – The Ark: Survival Evolved community reacted negatively to the AI-generated trailer for the upcoming Aquatica DLC, citing unnatural animations and distorted visuals. Prominent streamers expressed disappointment, highlighting concerns over the use of AI in game content creation.
Microsoft Introduces Copilot for Gaming AI Assistant (Xbox Wire) – Microsoft unveiled 'Copilot for Gaming', an AI-driven sidekick designed to be a personalized gaming companion, helping players access games faster, improve skills, and connect with friends and communities.
AI Enhances Tactical Shooter Game Bots (arXiv) – Researchers developed human-like bots for tactical shooter games using compute-efficient sensors and reinforcement learning, aiming to create more realistic and engaging AI opponents.
One of the themes of GDC was the shift in perspective on the criticality of liveops. With the right liveops, more games are doing better than ever. Ten-plus-year-old web games and mobile games are experiencing all-time highs and resurgence.
Another great example of liveops resurgence is Merge Mansion.
If you didn’t check out the deconstruction of this liveops turnaround we posted earlier this week, check it out now—a great write-up from Shilpa and Alexandra.
Whoops…
Be careful out there!