The Future of Video Games: How AI and New Distribution Platforms Are Changing the Industry
As a partner at Andreessen Horowitz, Joshua Lu has seen firsthand how the video game industry is evolving. With his background in product management at Zynga, Blizzard Entertainment, and Meta, he knows that the industry can never get too comfortable.
From Mobile Games to Virtual Reality
Lu’s experience in the industry spans from working on hits like Words with Friends at Zynga to helping produce tentpole hits like Diablo Immortal at Blizzard Entertainment. He even had a stint as a director of product management at Meta, where he worked on the VR game Horizon Worlds. When asked about his experience, Lu told TechCrunch: "I had to forget what I thought were universal truths and learn a whole new set of ways to do things."
The Rise of AI in Gaming
Now, as an investor at Andreessen Horowitz, Lu is keenly interested in the impact of artificial intelligence (AI) on the gaming industry. He believes that AI can help game developers create high-quality games with significantly reduced budgets and personnel.
"Half of the accelerator’s current batch are AI companies, doing everything from creating AI-crafted stories to using AI for 3D avatars," Lu explained. "The last game that I worked on at Blizzard took six years and a $250 million budget to ship. But wouldn’t it be so great if that kind of quality of game could be done with a 10th of the budget and a 10th of the people?"
While some may raise concerns about AI’s potential impact on high-paying developer jobs, Lu sees the benefits in terms of enabling more startups to form and become qualitatively competitive.
Creative Problem-Solving
Lu has witnessed companies getting creative in their use of AI. He cited an example from a startup that went through Andreessen Horowitz’s Speedrun accelerator: Clementine. This company released a demo where players had to solve a mystery by talking to AI and ensuring that the AI didn’t discover they were human.
"That may be a terrifying premise, or a tongue-in-cheek one, depending on how existential a threat you think AI could become," Lu said with a chuckle.
The Power of AI in Game Design
Lu also mentioned Echo Chunk, a company that raised $1.4 million in a round led by Speedrun. Echo Chunk’s game, Echo Chess, uses AI to instantly generate an endless number of levels. "These are all fairly early explorations," Lu noted, "but we’re excited in general about novel types of game design interactions and game dynamics that can be unlocked because of AI."
Building Games on Discord
In addition to the potential of AI, Lu is also advocating for startups to build games atop the popular communication platform, Discord. Earlier this year, Discord made it possible for developers to create apps within the chatting platform.
"Over the course of my career, I’ve seen the places for people to discover games dwindle," Lu said. "For example, no one finds games through social media feeds anymore, like many did with FarmVille. Where can we find the next platform where truly social games can be created and distributed?"
The Future of Game Development
Lu hopes that building on Discord will help developers create and distribute truly social games, making it easier for people to discover new content they’ll enjoy playing.
"Several companies entered the accelerator building within Discord," he said. "And several more pivoted to building in Discord over the course of the 12 weeks."
A New Era for Game Development
Lu believes that this is a crucial time for game developers, as there are more games being created than ever before. However, with so many options available, it’s becoming increasingly difficult for new games to stand out.
"The future of gaming is bright," Lu said confidently. "We’re on the cusp of a revolution in game development, and we’re excited to see what innovations will come from this new era."
What’s Next?
As the video game industry continues to evolve, it’s clear that AI and new distribution platforms are changing the landscape. With the rise of virtual reality, augmented reality, and cloud gaming, the possibilities for innovation are endless.
We’ll be keeping a close eye on these developments as they unfold. Will you join us?
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