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    Netflix Shifts Focus to Generative AI After Layoffs and Studio Closures in Game Development

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    Netflix also recently made layoffs in an effort to shrink some of its game studios, including its triple-A development studio in Los Angeles, which was founded and then led by former Overwatch Executive Producer Chacko Sonny. The company has announced that its video game division will now invest in generative AI to “accelerate the velocity of development and unlock truly novel game experiences that will surprise, delight, and inspire players.” This shift is likely to be a bitter blow for those affected by the layoffs and the studio’s closure.

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    More About the Netflix and Generative AI

    In a LinkedIn post, Mike Verdu, Netflix’s Vice President for GenAI in Games, shared his excitement about this new direction. He remarked, “I don’t think I’ve been this excited about an opportunity in this industry since the 90s when we saw a new game launch every few months that redefined what was possible. It was an incredible time for game development as talented creators showed us what the future could hold. Guess what? We’re back to those days of seemingly unlimited potential and rapid innovation, bringing players mind-blowing surprises every few months.”

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    It is yet to be seen just how useful the AI that is being used in game development actually is. Within the world of generative AI for art, the pitched output can sometimes show their artificial nature — be it odd-looking hands or people who all look alike — a definite case of the uncanny valley.

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    Verdu further addressed concerns by stating, “Ignore the uninformed speculation in the media about the changes in Netflix Games. What you’ve seen over the last several months was actually a planned transition.” Whether this will also be true for video games still has to be seen. Still, that doesn’t alleviate the fact that a studio has shut down and 35 people have lost their jobs, and have likely been replaced by AI roles.

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    It’s unclear how generative AI will be used in the future by Netflix’s video game unit, but the technology has great potential. From ideation to in-game dialogue, generative AI has a role to play in the game development pipeline from concept art and voice performances to in-game dialogue. “I am committed to a creator-first vision for AI, placing creative talent at the center, with AI serving as a catalyst and accelerant,” Verdu stated. He thinks AI is going to help bigger game teams work faster, giving smaller teams a massive new set of tools.

    FAQs

    1. What game studios has Netflix closed recently?

      Netflix has closed several game studios, including its triple-A development studio in Los Angeles, founded by former Overwatch Executive Producer Chacko Sonny.

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    2. How is Netflix planning to use generative AI in gaming?

      Netflix aims to invest in generative AI to speed up game development and create innovative gaming experiences, although the specifics of its implementation are still unclear.

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