The global gaming industry has always been at the forefront of technological innovation. From the early days of arcade machines to today's highly sophisticated, immersive digital experiences, the relationship between gaming and technology has been a driving force in both industries.

Over the years, advances in graphics, processing power, and connectivity have transformed gaming from a niche hobby into a global phenomenon, in which over 3.2 billion of the world’s population participate.

Now, two emerging technologies are poised to reshape the gaming landscape once again. Keep reading to find out more about what’s in store during the AI and Web3 gaming revolution.

Artificial Intelligence - A Brief Overview

Here in 2024, Artificial Intelligence is a pretty well-known technology. Even if it isn’t quite at the mainstream adoption levels that enthusiasts hope for, it’s certainly a hot topic even outside the tech industries.

Essentially, AI describes the simulation of human intelligence processes by machines, i.e. computer systems and software programmers. The type of processes replicated include learning—including acquiring information and the rules for processing and using it—reasoning (using rules to reach definite or approximate conclusions), and self-correction. Due to its utility, AI is being used across a variety of fields to both enhance user experiences and streamline internal organizational operations

Artificial Intelligence refers to the simulation of human intelligence processes by machines, especially computer systems. These processes include learning (the acquisition of information and rules for using it), reasoning (using rules to reach approximate or definite conclusions), and self-correction.

AI is now being utilized in a variety of fields, including gaming, to enhance user experience and streamline operations. By analyzing vast amounts of data, AI systems can make decisions, predict outcomes, and even create content, transforming the way games are designed and played.

How Are Gaming Companies Using AI?

Volley, a promising gaming start-up, has raised $55 million in its latest round of funding for a suite of voice-enabled AI games. The company is creating “entirely new categories of games” by leveraging AI voice technologies, which are compatible with Amazon Alex, Roku, and Fire TV.

This isn’t the only indication of the potential of Artificial Intelligence to transform the gaming industry. The world's first AI gaming monitor was unveiled at Computex 2024 in June. The MSI MEG 321URX features a unique AI feature called Sky Sight, which uses machine learning during gameplay to detect enemy positions and highlight them on screen. While this has invariably raised a few issues surrounding fairness and competition in the pro gaming scene, it’s nevertheless a notable development.

Artificial Intelligence isn’t being embraced with open arms by all sectors of the gaming industry, however. Nintendo president, Shuntaro Furukawa, has recently come out and said the gaming giant will not be using generative AI in the creation of its content; although, the company does recognize the long-standing relationship between game development and AI technology.

Web3 and the New Internet

If AI represents a new intelligence, Web3 represents the next phase of the internet. This is a technology sector that’s characterized by decentralized apps, platforms, and services that are built on or leverage blockchain tech.

While Web2 is dominated by centralized entities, Web3 aims to democratize the digital realm, giving users more control over the data and interactions.

So far, web3 development has remained mainly in the realm of GameFi and crypto gambling. Online crypto slots, for instance, and play to earn titles like Axie Infinity have been leading the charge when it comes to gaming.

But, if long-standing gaming industry incumbents have any say in the matter, we could start to see NFT-focused and blockchain-powered AAA experiences become much more commonplace in the space. There's even a strong argument to be made for the correlation between the rise of the metaverse and the resurgence in indie gaming titles.

Major Web3 Endorsements

Coingecko has recently published fascinating statistics looking at the presence of web3 in mainstream gaming. So far, a total of 29 out of the top 40 gaming companies in the world have begun investments into or standalone web3 gaming projects.

Microsoft, Sony, and Nintendo have web3 initiatives, while seven studios, including Nexon, Square Enix, and Konami are at various stages of launching blockchain and NFT metaverse games.

Of course, neither AI nor Web3 exists in a self-isolated bubble and the two technologies are all part of the next phase of digitization. Some gaming companies out there are attempting to fuse the two to deliver fresh new gaming experiences, such as Meta. The ubiquitous Big Tech multinational behind everything from social media to Virtual Reality has alluded to an AI integration strategy via a new job listing.

The advert calls for an expert to research and prototype new consumer experiences, with gameplay driven by generative AI for completely unique playthroughs. The listing also indicates that the development will initially be focused on Meta Horizon, its suite of VR, AR, and mixed reality games, but suggests the process could eventually roll out to PC and smartphone games.