Tag: live-service games

  • HoYoverse Invests $14.6B in AI Before PGC Barcelona

    HoYoverse Invests $14.6B in AI Before PGC Barcelona

    Key Takeaway

    – HoYoverse is investing $14.6 billion over three years to build proprietary generative AI infrastructure for live-service games.
    – The investment focuses on vertical integration—developing custom GPU clusters and model-training frameworks instead of licensing third-party LLMs.
    – First public test of the pipeline will be in *Petit Planet*, using proprietary NLP for unscripted, dynamic NPC conversations that adapt in real-time.
    – This strategy aims at long-term player retention and infrastructure independence, not just reducing production costs.
    – The scale of this investment sets a new baseline for backend spending in the live-service gaming market.

    Global mobile gaming spending shift begins

    The global mobile gaming industry is undergoing a major shift in spending as Pocket Gamer Connects Barcelona get’s under way. Shanghai publisher HoYoverse plans to invest 14.6 billion dollars into internal generative artificial intelligence infrastructure over the next three years, according to official reports via the media.

    Vertical integration strategy outlined by co-founder

    The strategy, outlined by HoYoverse co-founder Liu Wei during a private presentation in Beijing, focuses entirely on vertical integration. Instead of licensing third-party large language models from commercial tech providers, the studio is establishing a self-contained computing ecosystem. This require building proprietary graphics processing unit clusters and developing custom model-training frameworks for active live-service games.

    First public test for new pipeline

    The publisher will use this framework to automate coding pipelines and deliver real-time content personalization. The first public test for this pipeline is Petit Planet, the company’s upcoming cozy life simulation title that recently concluded its Stardrift closed beta phase on mobile platforms and PC. Traditional life simulation games rely on hardcoded dialogue trees that loop once exhausted.

    Dynamic NPC conversations planned

    HoYoverse plans to deploy proprietary natural language processing models directly into the game logic to allow non-player characters to engage in unscripted, dynamic conversations. These digital villagers analyze player choices and environmental changes on each planetoid, adapting their routines and verbal responses on the fly. This capital allocation seperates HoYoverse from competitors using automated tools purely to reduce production overhead.

    Gamble on player retention and independence

    It represents a direct gamble on long-term player retention and infrastructure independence. Addressing the technical risks inherent to the project, Liu Wei noted to doctoral students that if the pipeline fails to achieve its goals, the studio will view the capital loss as an elaborate fireworks display. As PGC Barcelona begins, the sheer scale of this investment sets a new baseline for live service backend spending.

    Widening gap in platform scaling

    HoYoverse’s massive backend investment underscores a widening gap in how next-generation titles scale across platforms. For a closer look at how these technical demands play out in real-time—including how the latest crossover event pushed Wuthering Waves near 50,000 concurrent Steam players while pushing mobile hardware to its limits.

    • Gameworldobserver.com
    • Hoyoverse.com/Petite Planet
    • Pgconnects.com
    Sources
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  • Sony reportedly expects more PS5 games from Naughty Dog and Bungie

    Sony reportedly expects more PS5 games from Naughty Dog and Bungie

    Key Takeaway

    – Sony and its studios are shifting toward fewer, bigger AAA games amid rising budgets and longer development times, impacting release cadence for first-party titles like Naughty Dog.
    – Naughty Dog has faced criticism for fewer new PS5 exclusives, instead releasing remakes/remasters/PC ports and delaying major new projects such as Intergalactic: The Heretic Prophet.
    – Live-service ambitions (e.g., The Last of Us Online) have influenced focus and resource allocation, sometimes at the expense of single-player experiences.
    – Funding and development cycles across Sony’s roster, including Bungie, have been scrutinized, with insiders noting higher expected output but ongoing cost-control concerns.

    Some fans anticipated more first-party PS5 games during the current console generation. It’s the role of studios like Naughty Dog to create unique content for PlayStation hardware. Bungie has also become instrumental in its cross-platform and live-service efforts. Bloomberg insider Jason Schreier revealed that Sony expected a higher output from both.

    Industry shifts and expectations

    On Bluesky, Schreier was discussing the latest Bungie news. After the demise of Destiny 2, he explained that funding was why the company hadn’t already started work on Destiny 3. A gamer argued that Sony should be equally concerned about spending at Naughty Dog. The reporter then chimed in, explaining, “Oh they definitely have an issue with that.”

    Clarifications and broader context

    Schreier would later clarify on the ResetEra forums that he wasn’t singling out Naughty Dog. With all of its game-makers, Sony has grown weary of ballooning budgets and extended development cycles. Nevertheless, the studio is a prime example of how the industry has shifted toward fewer, more expensive-to-make AAA projects.

    Past performance and current output

    For the PS3 and PS4 consoles, the California-based creators released titles at a steady clip. Uncharted: Drake’s Fortune debuted in 2007, followed by 2 other entries in the action-adventure franchise. Also, The Last of Us Part 1 appeared, setting the stage for impressive sales figures throughout the series.

    Current struggles and future prospects

    Unfortunately, that momentum didn’t continue. Many followers have been disappointed by the limited number of Naughty Dog PS5 exclusives. Instead of new games, the company has produced remakes, remasters, and PC ports for The Last of Us IP.

    Development cycles and ongoing projects

    Addressing the lack of new releases, critics blame slow development cycles for AAA games. Intergalactic: The Heretic Prophet is the big-budget undertaking that the studio is currently focused on. Originating in 2020, it’s still not clear when the sci-fi spectacle will ship. Fans hope to hear an update at Summer Game Fest or another June showcase.

    Live-service impact and other publishers

    Sony’s embrace of live-service games may also be a factor. Naughty Dog reportedly spent 7 years working on the multiplayer The Last of Us Online. Despite being at an advanced stage, it shelved the project in 2023. The costly development was preventing progress on single-player games, which were more familiar to the studio.

    Industry-wide delays and expectations

    The long wait is not unique to PS5 exclusives and SIE’s cross-platform games. The obvious case is Rockstar and GTA 6, with rising odds that it will finally arrive in November. Its open-world setting should provide endless gameplay hours, bolstered by a steady stream of new content. Even with a likely shorter campaign, hopefully Intergalactic will reward patient gamers.

    Jason Schreier@Bluesky, jschreier@ResetEra forums


    Sources

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  • Ubisoft’s Focus on Microtransactions in Live-Service Assassin’s Creed

    Ubisoft’s Focus on Microtransactions in Live-Service Assassin’s Creed

    Key Takeaways

    1. Ubisoft is seeking a Game Designer to enhance profitability within live-service setups for titles like Assassin’s Creed Shadows.
    2. The focus will be on improving progression systems and monetization strategies, including the use of the Animus Hub launcher.
    3. Production costs for recent Assassin’s Creed games are high, prompting the company to explore more microtransactions to improve financial stability.
    4. There is criticism from gamers regarding the fit of single-player games within a live-service model, with a growing trend towards always-online multiplayer experiences.
    5. Upcoming titles, including Invictus, are expected to incorporate more games-as-a-service elements, reflecting a shift in Ubisoft’s strategy.

    Ubisoft is known for its games like Assassin’s Creed Shadows, which already includes microtransactions for cosmetic items and experience enhancements. Nevertheless, the company, which is going through tough times, seems keen on finding new ways to make money. A job listing found by Clawsomegamer indicates a search for a Game Designer whose role would focus on boosting profits in a live-service setup.

    Job Role Details

    Located in Quebec City, this developer will aim to enhance Progression and Systems within Assassin’s Creed titles. The job ad mentions the Animus Hub launcher, which links various games together, and calls for “ongoing improvements to HUB systems in an active environment.” The word “monetization” is also highlighted to attract players back. Additionally, the qualifications section seeks candidates with experience in “live or online environments.”

    Production Costs and Company Strategy

    Reports indicate that the production costs for Assassin’s Creed Shadows and Valhalla are between $75-100 million. With recent cancellations and job cuts, the company is eager to change its financial situation. A possible strategy could involve introducing more microtransactions and focusing on live-service games.

    This method isn’t exclusive to Ubisoft, but the company is openly discussing its plans. According to an investor report from July 2025, microtransactions “enhance the player experience.” Even though they insisted these purchases are optional, they still received backlash.

    Criticisms and Industry Trends

    Gamers have pointed out that single-player games usually don’t fit into the live-service model. The Animus Hub emphasizes the importance of staying connected and ensuring continuity across various AC games. However, players still have the option to explore their expansive worlds offline. The job listing suggests that upcoming titles like Hexe may rely more on games-as-a-service elements.

    Sadly for fans of traditional gaming, this trend seems likely to persist. Other firms, including Sony PlayStation, have made significant investments in always-online multiplayer experiences. The latest game, Horizon Hunters Gathering, might have even postponed the single-player focused Horizon 3.

    Future Games and Expectations

    For Ubisoft, the anticipated Invictus could align well with the Game Designer role. This game, featuring PvP gameplay reminiscent of Fall Guys, is expected to be released in 2026.

    Source:
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