With well-attended panels on the subject and tons of startups pushing new tools on the show floor, it was undeniable that the generative AI craze has yet to loosen its grip on a vulnerable gaming industry in need of change.

At 2026 GDC Festival of Gaming, one promising startup bases stories on handwritten plots, while another seems to throw its hands up.

Microsoft confirms that the Gaming Copilot AI assistant, which is currently available on PC and mobile devices, will arrive on Xbox consoles soon.

Since Andrej Karpathy coined the term “vibe coding” just over a year ago, we’ve seen a rapid increase in both the capabilities and popularity of using AI models to throw together quick programming projects with less human time and effort than ever before.

"Claude Code and OpenClaw have sparked the agent inflection point," Huang pronounced. ( OpenClaw, formerly Clawdbot, is a popular AI assistant with some security issues.) NVIDIA adds a protective layer of security and stability that it's calling Nemo Claw; you can try it now, in a preview version.

Why this is important: The prospect of AI generating games at scale isn’t just about faster production, but it also alters the economics and creative foundation of the industry. On one side, developers and studios could use AI to automate repetitive ...

Generative AI was all over this year's Game Developers Conference, but there was no clear vision of how it best fit into games.

The gameplay of Fabula Rasa is built around fully improvised, AI-generated conversations. You create your own character on the spot, and the game characters and your interactions are all powered by LLMs.