Microsoft, which owns Xbox and several studios, including Activision Blizzard, closed Tango Gameworks and Alpha Dog Games in May. Meanwhile, generative AI systems from companies like OpenAI are increasingly infiltrating various industries, leading to job losses.

The gaming industry, now economically more powerful than Hollywood, is particularly vulnerable to AI's impact. Most of its workforce is non-unionised.

A recent survey by the Game Developers Conference revealed that 49 per cent of over 3,000 respondents reported AI usage in their workplaces, with 80 per cent expressing ethical concerns.

One game developer and technical artist, noted, "It's here. It's here, right now. The genie is out of the bottle, Pandora's box is opened."

At Activision, the situation is similar. One employee mentioned that many 2D artists had been laid off, and the remaining concept artists were compelled to use AI in their work. Employees have been required to undergo AI training, and its use is encouraged across the organisation.