“It’s important to assume every game company is now using AI.” Nexon CEO comments following Arc Raiders launch

Nexon CEO Junghun Lee told Game*Spark that generative AI has materially improved efficiency in both game production and live-service operations and has raised the industry’s average quality floor, arguing that with widespread adoption (the Tokyo Game Show organizer says over 50% of Japanese studios use AI) firms must choose competitive strategies—he identifies human creativity as Nexon’s key differentiator. His remarks, made as Embark’s ARC Raiders faces criticism over AI use (Embark says visuals did not use generative AI but some text-to-speech was employed), highlight the trade-off facing publishers: faster, lower-cost development and stronger live services versus potential consumer backlash and reputational risk, and it remains to be seen how Nexon will operationalize this stance.

Analysis

Nexon CEO Junghun Lee told Game*Spark that generative AI "has definitely improved efficiency in both game production and live service operations" and that the technology has raised the industry's "average" quality floor; he argued "every game company is now using AI" and framed human creativity as Nexon's competitive response. The article cites a Tokyo Game Show organizer finding that over 50% of Japanese game companies use AI, lending empirical support to Lee's premise.

The comments were given against the backdrop of criticism directed at Embark Studios' ARC Raiders and 2023's The Finals, where Embark denies generative-AI use for visuals but acknowledged text-to-speech for some voice lines; this episode highlights active consumer sensitivity and reputational risk around AI disclosures. Embark's justification—that AI and machine learning help keep studio size sustainable—echoes the operational efficiency argument Lee endorses, illustrating the trade-off between cost/tempo gains and public backlash.

From a market perspective the provided signals label sentiment as mixed with a low market-impact score (0.18), implying limited near-term price reaction absent concrete financials. Without revenue, margin or guidance data in the article, the primary near-term variables for investors are Nexon's execution plan for AI, live-service KPIs and community reception, all of which will determine whether AI adoption is a net operational benefit or a reputational drag.

Key Decisions for Investors

• Monitor Nexon's public disclosures and product-level implementation of AI and its emphasis on "human creativity," as clarity there will materially affect reputational risk and consumer acceptance
• Track early engagement and monetization metrics on ARC Raiders and comparable launches plus community sentiment indicators, since sustained negative backlash could erode live-service revenues
• Favor exposure to developers that articulate transparent AI governance and a human-differentiation strategy and consider hedging or avoiding firms with opaque AI practices until consumer acceptance and regulatory norms become clearer