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Ex-Nexon Chief Says AAA Development Is ‘Structurally at Its End’ as AI Looms Large

He cites board pressure that drives risk‑averse greenlights, suppressing originality.

Overview

  • In a new interview with The Game Business, Owen Mahoney characterizes AAA’s condition as an “end-of-days” moment and warns it is structurally failing without a serious rewrite of development practices.
  • He describes public-company CEOs facing intense scrutiny over nine-figure bets, which pushes them to approve familiar projects rather than novel ideas.
  • Mahoney predicts generative AI will enable smaller teams, shorten timelines, and could, by his estimate, help the games business triple in five to seven years.
  • He cautions that AI can flood the market with low-quality “slop,” criticizes cost-cutting hype, and argues players will keep rejecting poor products.
  • Pointing to Nexon’s 2021 purchase of Embark despite investor pushback, he credits the success of Arc Raiders to a motivated team and rejects the idea that past hits guarantee future results.