AI could cut gaming costs in half and unlock 22 billion profits says Morgan Stanley

Smaller studios may ship faster by leaning on AI

Morgan Stanley says AI tools could slash game-development costs by nearly half, potentially unlocking about $22 billion in new profits. The shift could let smaller teams build and iterate faster, improving games after launch rather than waiting for traditional cycles. Distribution and data holders may capture the biggest gains, while game engine makers face disruption unless they adapt.