Shift Up’s CEO Says They Need AI Because Of The Chinese Boogeyman

In my previous posts about the use of generative AI tools in the video game industry, I have tried to drive home the point that a nuanced conversation is needed here. Predictably, there were many comments of the sort of stratified opinions that I was specifically attempting to avoid, but I always knew they’d be there. And that’s okay. Where there is novelty, there is disruption and discomfort. And, frankly, some of the dangers here aren’t unfounded.

But in the end, I remain of the opinion that generative AI will be a tool used by game developers generally in the future, if not the present. I also still firmly believe that the conversation we should be having is not whether AI should be used in games, but how it should be used.

And people like the CEO of Shift Up in South Korea sure aren’t helping when they insist on the need to use AI by trotting out the Chinese boogeyman.

Will gen AI be part of Stellar Blade 2‘s development? It doesn’t sound entirely outside the realm of possibility after recent comments from developer Shift Up’s CEO. The South Korean game studio is currently working on a sequel to the 2024 sci-fi action game and its boss thinks AI is the only way to compete with the massive development teams coming out of China.

“We devote around 150 people to a single game, but China puts in between 1,000 to 2,000,” Hyung-tae Kim, who also served as director on Stellar Blade, said during a recent conference briefing according to GameMeca (translated via Automaton). “We lack the capacity to compete, both in terms of quality and volume of content.”

Where do I even begin with this nonsense? First, it’s completely devoid of the nuance I was asking for in these kinds of discussions. This is essentially stating that developers can make up for China’s massive human assets it can throw at game development by using AI to make up the difference. 1 employee using AI, doing the math, can be the equivalent of 100 or so Chinese workers. That sounds like you’re looking to stave off hiring by using AI and you aren’t helping!

It also fails, somehow, to recognize that generative AI can be used in China as well. China isn’t exactly ignoring AI tools, you know, so this arms race makes no real sense.

Finally, it’s just kind of bullshit. Chinese studios have certainly produced some games, some that have been quite successful. But when we think about the major players in the video game industry, especially in terms of quality and revenue, China is but a fairly average player on the world scene. Tencent, NetEase, and MiHoYo all crack the top ten in revenue, but the rest of the longer list is filled with American, Japanese, and South Korean studios, among some other countries. They’re a player in the industry, to be sure. But they aren’t some dominant force that requires special tactics to compete with.

But despite all the above, Shift Up has been both successful and has committed to retaining and treating its staff well.

Was Kim actually worried about rising competition from China, or was he just flexing his geopolitical muscle as Stellar Blade‘s popularity catapults Shift Up into the big time? After all, that game sold millions of copies across console and PC without the help of AI, even as Tencent, Net Ease, and other major Chinese publishers flood the market with AAA free-to-play games.

For now at least, Shift Up employees are being well taken care of. Seoul Economic Daily recently reported that all 300 employees at the studio were given AirPods Max, Apple Watches, and a bonus $3,400 to celebrate the company’s profitable 2025. Why no video game consoles? It already gifted PS5 Pros and Switch 2s last year.

That sure doesn’t read like a studio in dire straits due to the scary Big Red Machine or whatever he’s trying to pitch. How about you keep making good games and all will be fine?

Then we can get back to the real, more nuanced conversation about just what place AI has in video game production.