With all the controversy surrounding DLSS 5, it’s worth asking how much ‘damage’ generative AI has done to the video game industry. While some may consider Nvidia’s ‘harm’ debatable, there is one count where we know it’s hurting video game companies, and by a lot.
Yesterday, Nvidia unveiled DLSS 5 to immediate backlash. It was bad enough that they announced they were using controversial AI model tech, but their preview also showed mixed results.
But Matthew Ball revealed a clearer harm that AI has brought to video games. In his presentation for the State of Video Games this year, he revealed that there was a huge spike in using AI apps in 2025.
Ball explained that AI apps joined the likes of TikTok, Polymarket, and OnlyFans in taking away attention – and revenue – from video games.
Many gamers may take for granted that the time they spend on Facebook or YouTube isn’t spent playing video games. But this is different – these apps are replacing gaming, and AI apps are part of it.