Issue #10

Live NPCs That Actually Remember You

January 11, 20264 Stories8min Read

Welcome back to AI Playground. Someone gave the NPCs memory.

Editor's Note

This week’s articles reflect a growing divide in how developers are approaching AI in gaming, with some prioritizing creativity and authenticity while others embrace AI’s efficiency to enhance player experiences. Indie studios like Hooded Horse are championing original craftsmanship, contrasting with giants like Sony, which are exploring AI to streamline gameplay and make it more accessible. These trends capture an industry still figuring out how human artistry fits alongside accelerating technological change.

01

'It's cancerous:' Manor Lords publisher Hooded Horse wants to avoid genAI like the plague

'It's cancerous:' Manor Lords publisher Hooded Horse wants to avoid genAI like the plague

Hooded Horse, the indie publisher behind Manor Lords, announced a strict policy against using generative AI assets in their games, expressing strong concerns about its impact on creativity and authenticity.

This stance encourages developers to prioritize original content and craftsmanship, which could lead to more unique and immersive gaming experiences.

02

“Trained on Data We Own”, Divinity Dev Explains How AI Will Be Used Without Replacing Humans

“Trained on Data We Own”, Divinity Dev Explains How AI Will Be Used Without Replacing Humans

The developers of Divinity announced plans to integrate AI tools that will be trained on their own proprietary data, focusing on enhancing gameplay without replacing human creativity.

This approach allows game developers to streamline development processes while preserving the artistic vision and unique storytelling that only humans can provide.

03

Fresh Look: Why AI Efficiency Could Affect the Very Soul of Gaming

Fresh Look: Why AI Efficiency Could Affect the Very Soul of Gaming

Gameindustry.com explored how advancements in AI efficiency could transform game development practices and player experiences, emphasizing the potential for AI to reshape narrative and gameplay design.

Developers can leverage AI to create more immersive and dynamic gaming worlds, allowing for personalized experiences that keep players engaged and reduce production costs.

04

Sony files patent for AI ghost system to assist players through difficult game sections

Sony files patent for AI ghost system to assist players through difficult game sections

Sony has filed a patent for an AI ghost system designed to help players navigate challenging sections of games by providing guidance and tips in real-time.

This technology could enable developers to create more accessible gaming experiences, allowing players of all skill levels to enjoy their games without getting stuck.

Deep Dive

Live NPCs That Actually Remember You

Live NPCs That Actually Remember You

One of the quiet shifts happening in games right now is that NPCs are starting to behave less like scripted content and more like systems that persist. In Total War: PHARAOH, an in-game assistant can explain why your supply lines collapsed by querying live game data, not by parroting a help menu. In PUBG: Battlegrounds, a companion under active testing remembers how you died in previous matches and adjusts its coaching accordingly. These features are shipping inside real, high-traffic games, built on NVIDIA’s ACE stack, which combines speech recognition, language models, and real-time facial animation.

For developers, this changes how characters get built. Not long ago, adding a “smart” NPC meant writing dialogue trees, recording voice lines, and approximating memory with brittle flags and conditionals. Now designers define a persona, expose a set of game APIs, and let the agent operate within clear constraints. Dialogue is generated when needed. Memory is stored and retrieved as data tied to the player’s history. Updating an NPC after a balance patch is closer to tuning a system than rewriting content.

What makes this moment different is not the intelligence of the models alone, but how accessible the full pipeline has become. NVIDIA packaged speech, reasoning, and animation into a single SDK optimized for consumer hardware. Smaller teams are already copying the pattern using open models, transcription tools, and lightweight memory stores wired into Unity or Unreal. Hardware vendors like Razer are leaning into this shift too, pitching local AI workstations that let studios run and fine-tune these systems without relying entirely on the cloud.

The design implications show up quickly. Strategy games can guide players through complex mechanics as they encounter them, instead of front-loading tutorials. Shooters can offer adaptive coaching that reflects how someone actually plays. NPCs can respond to systemic events they were never explicitly scripted for. The cost of experimenting with intelligent companions has dropped dramatically, and the first wave of shipped features is giving the rest of the industry a practical playbook.

NPCs are no longer just authored content you ship once. They are systems you iterate on, and that shift is already reshaping how games get made.

Rate This Issue

Never Miss the Future of Gaming

Join AI researchers, game developers, and creative technologists exploring the frontier. The stories shaping AI and gaming, explained clearly each week. No noise.

By subscribing, you agree to receive weekly emails. Unsubscribe anytime.

Weekly
Newsletter
50+
AI Sources
100%
Free

No spam, unsubscribe anytime • Delivered every Sunday • Privacy protected