Visitors play the Warriors All-Stars video game in the Koei Tecmo Holdings booth during the Tokyo Game Show 2017 at Makuhari Messe on September 21, 2017 in Chiba, Japan. TOKYO — Video games are in focus with the Tokyo Game Show 2023 underway — but some of the biggest game developers in Japan say hot trends like generative AI and virtual reality/augmented reality headsets for game development may not be ready yet. Game developers like Japan's Koei Tecmo have been using conventional algorithmic AI "for a long time," Hisashi Koinuma, president and chief operating officer of Koei Tecmo Games told CNBC, but challenges still remain when utilizing the latest iteration — generative AI — in game development. "We are not yet at the stage of integrating generative AI into our products, but are in the process of testing various ways to integrate it in the future," Koinuma said Wednesday. The issue with copyright concerns is not one shared by Koei Tecmo alone.

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