Sony launches generative AI pilot with Bandai Namco as PS5 sales slump
Executives emphasise that artificial intelligence will augment human creativity rather than replace it, even as the PlayStation ecosystem faces rising costs and supply constraints.

Sony has announced a collaborative pilot initiative with Bandai Namco Holdings Inc. to explore the application of generative AI in video production. The move was detailed during a corporate strategy presentation where the technology was positioned as a tool to enhance human imagination rather than supplant human creators.
Sony President and CEO Hiroki Totoki described the technology as an amplifier for human imagination, noting that the pilot team has already achieved massive gains in speed and productivity. However, Totoki acknowledged significant technical hurdles, specifically citing a lack of consistency and controllability in current generative AI tools for professionals who require precise output in their work.
Concurrent with the announcement, Sony Interactive Entertainment chief Hideaki Nishino outlined how AI is being integrated into PlayStation development to accelerate production cycles. He highlighted specific applications such as facial and hair animation tools, noting that these advancements allow for more sophisticated outputs that were previously constrained by time limitations.
Despite the optimism regarding efficiency, Nishino admitted that widespread AI adoption will lead to a meaningful increase in the volume of content generated. He expressed concern over potential quality dilution, often referred to as slop, and affirmed that Sony's studios remain committed to prioritising high-quality output that defines the PlayStation brand.
The strategic pivot towards artificial intelligence coincided with a report of a 46 per cent downturn in PS5 sales for the fourth fiscal quarter. Sony sold only 1.5 million units in the period, a figure released against a backdrop of rising operational costs, memory shortages, and a recent second price hike for the console lineup within 12 months.
While the Bandai Namco pilot aims to address production bottlenecks, the broader market context remains challenging. The company's recent earnings presentation underscored the tension between investing in future-facing technologies like AI upscaling and navigating immediate financial pressures affecting consumer demand.


