Jack Buser, global head of gaming at Google Cloud, announced that the current business model relied upon by the video game industry is completely unsustainable, pointing out that artificial intelligence is the only realistic path forward. In a press interview published this week alongside the Google Cloud Next 2026 conference in Las Vegas, Buser argued that artificial intelligence tools possess the power to save an industry severely damaged by years of consecutive layoffs, canceled ambitious projects, and massive inflation in development and production costs.
An unsustainable business model
In his precise diagnosis of the crisis, Buser told GamesIndustry.biz: “The era of investing 5, 7, or even 10 years to develop a single video game at a cost of hundreds of millions of dollars is simply an unsustainable era.” He added, questioning: “Can we return to a healthier, more sustainable industry model where we can invest tens of millions into a game and release it within a few years?”
These comments come against a grim backdrop experienced by the industry. The 2026 State of the Game Industry report, based on a survey of over 2,300 professionals conducted by the Game Developers Conference, revealed that 28 percent of game developers worldwide experienced layoffs over the past two years, a percentage that rises to 33 percent among workers in the United States. Estimates indicate that roughly 45,000 jobs were lost across various industry sectors between 2022 and mid-2025. Furthermore, early indicators suggest that 2026 could match the heavy losses seen in 2023, which reached about 10,500 layoffs. Facing these systemic pressures, Buser viewed artificial intelligence as an effective tool to address the imbalance, noting that it will help companies “correct the course of these business models and right-size them.”
Studios quietly adopting the technology
Buser pointed out that there is widespread adoption of artificial intelligence technologies within studios, although this adoption often remains unannounced. A poll conducted by The Harris Poll on behalf of Google Cloud earlier showed that 90 percent of developers are already using AI tools at some stage of production.
Japanese gaming giant Capcom is one of the studios cited by Buser, as it has publicly acknowledged using generative artificial intelligence powered by Google Cloud servers for game testing and ideation purposes. AI agents currently run for over 30,000 hours per month across about half a dozen games in development. However, the Japanese company took care to emphasize that it will not integrate AI-generated assets and resources into its final game content, limiting the use of this technology to improving workflow efficiency and reducing technical errors.
Buser compared equipping developers with AI tools to wearing an “Iron Man suit,” which grants its user superpowers, and urged executive technology managers to make this technology available across all departments of their organizations. He also noted that independent and small studios in particular are the biggest beneficiaries, as they will gain the ability to compete directly with major publishers producing AAA games, whose cost structures have become increasingly unbearable.
Ongoing doubts and challenges
Despite the optimistic vision put forward by Buser, not everyone shares the same enthusiasm. Google Cloud is a major supplier of AI infrastructure in the gaming sector, giving Buser a clear and direct commercial interest in promoting the wider adoption of these technologies. In contrast, the Game Developers Conference survey found that only 36 percent of developers reported using AI in their daily work, indicating a gap between corporate reports and the actual reality of developers.
Widespread sectors still oppose the integration of AI tools for ethical reasons, particularly regarding the use of copyrighted material in the training data of those models without compensating their owners. Buser himself acknowledged that this technological transition will not pass without pain or consequences, telling Decrypt last year: “Some gaming companies will thrive thanks to this transition, while other companies will not survive.”
Frequently Asked Questions
Why is the current business model in the video game industry unsustainable?
The model is unsustainable due to exorbitant costs reaching hundreds of millions of dollars and long development periods ranging from 5 to 10 years for a single game, making profitability and cost recovery extremely difficult.
How many jobs have been lost in the gaming industry recently?
According to estimates and industry reports, roughly 45,000 jobs have been lost across various sectors of the video game industry between 2022 and mid-2025, with waves of layoffs continuing into 2026.
How do companies like Capcom use AI in their games?
Capcom uses generative artificial intelligence for automated game testing and ideation to improve workflow efficiency, but has emphasized that it does not integrate any AI-generated art assets or graphics into the final game product to avoid ethical and legal problems.
What are the most prominent ethical concerns regarding the use of AI in game development?
Ethical concerns focus primarily on the use of artwork and copyrighted material to train AI models without obtaining permission from their original creators or compensating them, in addition to the fear of losing more human jobs.
