That's nice but for now fans still would rather see the big game company like Square Enix or Bethesda writing the dialogue themselves.
And game companies listened to their fans.
And there's nothing wrong with that, just as there's nothing wrong in reading a book with set narrative and dialogue printed onto the paper. But for more expansive world and realism and interactivity in video games may require random factors that can only be found in nature, such as free-will.
But I agree, it all comes down to how much is needed for whatever game.
That's not AI, that's an advanced coding.
Mojang already said that they didn't and won't use generative AI in development as Minecraft is "about creativity and creating."
Saying that Minecraft uses AI would be an insult to Mojang Studios.
That's why even now Mojang still said that They Currently Has No Intention of Using Generative AI in Its Development Process.
Isn't AI itself advance coding? The worlds generated in Minecraft follow factors that are both random yet orderly. Such as placement of trees on the surface to coal, iron and diamonds underground. Plains, jungles, desert, snow, etc. Each world is large, expansive and unique to each player. It's not the same as human-like AI conscious creation, nor are the worlds catered for the players individual interest, but it is still generative content.
It's sound good if they make graphic more realistic with AI, but for me what matters is gameplay.
And not everything has to be made into realistic.
I'd hate Chuchu Rocket, Rhythm Heaven, Patapon, Feel the Magic XY/XX, LocoRoco, The Rub Rabbits, or Warioware changed their artstyles.

But of course everyone has their own taste of what video games they prefer so I won't comment much about it.
That's true, but with Sony and Microsoft trying to make their consoles cutting-edge with realistic graphics to be available for developers, such as polycounts, rendering, lighting, physics and all that, it would make sense AI-generative photo-realistic graphics would be the next step. Granted, the PS1 Tomb Raider video is somewhat of a poor example, but could also show that a programmer could set the AI on how much to render and how much to leave the original content so that creative style and design would still be intended.
Still about AI, while big companies like Nintendo, Sony, Microsoft, and SEGA won't use AI in regards to honour the wish of what most of their fans wanted,
now many indie game companies have already explored and incorporated AI into their games.
They have to build fans from scratch afterall so they could target new fans that aren't anti AI.
So yeah, it could be an opportunity for them to catch up the big companies using AI as long as it's done right.
May be in the future using AI in games will become the norm, but sure right now it still isn't for the big companies.
Did Microsoft really said they won't incorporate AI into their games? 'cus they're still part of "
Big Tech" and just as collectively guilty of wanting to open up Pandora's box just to see if there's some money at the bottom of it... when it comes to AI development in general. I wouldn't be surprised if they used a modified version of Copilot for gaming.
But, with XBox now bending the knee to PlayStation, leaving Nintendo and PlayStation are the sole competitors in the current "console wars", doesn't mean monopoly or corporation is exclusive to the two. While some tech companies had thrown their hats into the console market only to be forgotten, a pro-AI corporation may introduce a new console to the scene (I remember and was just as surprised when XBox took the scene for the first time). That's a "maybe" though, given I understand how cutthroat the console market can be. I think that XBox may "continue" through it's PC apps and PC gaming.
But, all in all, I understand why there are those who dislike AI-generative content in general and why they regard it taking away human creativity. I myself want to see AI-generative content used for human creativity instead, as it may allow games to achieve more realistic and lifelike experience possible for players... outside
FullDive or
Headjacks.