Smash Bros. Director Predicts Generative AI Will Lead to Surge of Unprofitable Games
Masahiro Sakurai, the veteran director behind the Super Smash Bros. and Kirby franchises, suggests that the gaming industry is entering an era where volume no longer equates to value. In a recent interview with Japanese publication Denfaminicogamer, Sakurai predicted that generative AI will trigger a massive surge in game releases, though he cautioned that the majority of these titles will be unprofitable and unoriginal.
The sheer scale of the modern market provides the backdrop for Sakurai’s assessment. The number of annual releases on Steam has skyrocketed from approximately 275 in 2010 to more than 19,000 by 2026.
The distinction between human creative vision and algorithmic generation remains a key focus for industry veterans.
Sakurai’s analysis centers on the distinction between generative output and creative vision. He pointed to Fumito Ueda—the acclaimed creator of ICO and Shadow of the Colossus—as a benchmark for the kind of human originality that AI cannot replicate. From this perspective, the saturation of the market with AI-assisted content may lead to a surplus of games that lack the distinct intentionality required to stand out or find a sustainable audience.
This shift creates a paradox for the industry. Widespread adoption of generative technology could result in a marketplace where “unprofitable” games become the default. Sakurai’s remarks suggest that the commercial value of those games may diminish if they fail to provide unique experiences that justify their existence to players.
In a landscape defined by 19,000 annual releases, the ability to generate content may become less important than the human creativity needed to make that content commercially viable.
