Top Stories

HoYoverse to invest up to $14.6bn in AI for in-house tools (1 min read)

HoYoverse will invest up to $14.6 billion in AI over three years to develop in-house tools, announced during a May 15 recruitment session by co-founder Liu Wei. The publisher plans to build an internal AI ecosystem including GPU clusters and training systems rather than relying solely on external models. AI will enhance NPC systems, content generation, and live-service environments, with the upcoming life simulation title Petit Planet featuring AI-powered NPCs. (GamesIndustry.biz)

Funding sources for UK studios in 2026: what's on offer, and the requirements developers need to be aware of (8 min read)

UK studios can access Video Games Expenditure Credit (VGEC), which provides a 34% tax credit on qualifying development costs—roughly 25.5% of eligible expenses annually. To qualify, studios need a UK-registered company leading development and must pass a cultural test requiring 16 points through UK spending, personnel, or British/EU-created material. Credits are non-repayable if projects are cancelled and can be spent freely or converted to cash payments or loan collateral. (GamesIndustry.biz)

LittleBigPlanet Developer Media Molecule's Next Game Reportedly Features 'Open-World Content' (7 min read)

Media Molecule, the LittleBigPlanet and Dreams developer, is working on an unannounced new IP featuring open-world content, according to a current employee's resume. The project marks a shift toward larger scale compared to the studio's previous creation-focused titles. No timeline or additional details have been announced. (IGN)

Business & Finance

Nintendo reportedly planning 20% production increase for Switch 2 (2 min read)

Nintendo is reportedly increasing Switch 2 production to 20 million units, a 20% jump from its initial 16.5 million forecast. The increase follows strong early adoption; analyst Serkan Toto predicts actual sales may exceed even the raised target. (GamesIndustry.biz)

Games & Releases

Inefficient And Laborious, The Ongoing Path To Making Deltarune (8 min read)

Toby Fox discusses Deltarune's development approach in a Game Informer feature, explaining his method of creating unique mechanics for every enemy and puzzle rather than reusing systems—a deliberate inefficiency he acknowledges but accepts as his creative choice. (GameInformer)

Paradox Interactive Making LEGO City Skylines Spinoff, Ratings Board Leak Suggests (2 min read)

Paradox Interactive is developing a LEGO City Skylines spinoff, according to a Korean ratings board leak. The original Cities: Skylines developer Colossal Order parted ways with Paradox last year; Iceflake Studios now handles Cities: Skylines 2 improvements. (IGN)

Culture & Community

New video from Elden Ring movie set seemingly confirms the presence of early game foes and a familiar castle (4 min read)

Behind-the-scenes video from Alex Garland's Elden Ring movie set at Conwy Castle (North Wales) shows soldiers atop walls, suggesting Stormveil Castle will appear in the film. The movie releases March 3, 2028 in IMAX. (Eurogamer)

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— james