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Stock impact report

Gaming industry could unlock $22 billion in profits on AI-driven cost cuts - Morgan Stanley [Yahoo! Finance]

Morgan Stanley (MS) 
Last morgan stanley earnings: 4/16 07:15 am Check Earnings Report
US:NYSE Investor Relations: morganstanley.com/about-us-ir
Company Research Source: Yahoo! Finance
half, potentially unlocking about $22 billion in ?annual profits for game makers worldwide, Morgan Stanley analysts said. The adoption of AI ?tools to automate tasks such as creating gaming environments, generating dialogue and testing software could help shorten production timelines ?and reduce costs, helping lift margins over time, the brokerage said in a note dated Tuesday. However, it added, gains are unlikely to be distributed evenly across the gaming ecosystem. The Wall Street brokerage estimates global consumer spending on video games will total $275 billion this year, with roughly ?20%, or about $55 billion, set to ?be reinvested in game development and operations. Typically expensive and labor intensive, game development could become leaner as AI enables smaller teams and faster ?post-launch improvements, Morgan Stanley added. The scale of modern game development is illustrated by Take-Two Interactive's Grand Theft Auto VI, one of the industry's most anticipated tit Show less Read more
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