Japanese game developer Level-5 has issued an apology and an explanation after fans accused the studio of using generative AI in footage shown during its recent game reveal showcase. The controversy erupted following the company's Nintendo Direct-style presentation, titled Level5 Vision 2026 II: Dreams, which offered first looks at upcoming titles including a Professor Layton remake, DecaPolice, and Yo-Kai Watch 2: Haunted Domain.
Viewers quickly took to social media to point out what they believed were telltale signs of AI-generated content, particularly in background scenes. The backlash was intense enough that discussion of the alleged AI use overshadowed the games themselves. One fan on X/Twitter wrote that they were «SO excited» about Level-5's announced comeback but felt that «seeing this much blatant genAI being used across their games… yeah, this ain't it.» Another said, «You were a beautiful studio. Now you are nothing more than a disappointment to us. We don't want this AI s**t.»
Level-5 president and CEO Akihiro Hino, who hosted the showcase with his own animated avatar, responded on X/Twitter. His message served as both an apology and a clarification, confirming that the studio did use generative AI for certain aspects of development. Hino described the company's heavy use of AI as «experimentation with the latest technology» and said the team «sincerely apologizes to anyone who found this off-putting.»
He sought to reassure fans that core creative elements remain human-made. «However, please be assured that all elements defining the appeal and individuality of our released titles—such as the scenario, character designs, and foundational settings—are created entirely by human hands,» Hino said. «We utilize AI primarily to streamline the process of digitizing human-created assets; for instance, accurately converting original artwork into 3D polygon models. You can rest assured that the games we release do not contain content simply generated by AI.»
Hino also defended the approach, arguing that «the time saved through AI-driven efficiencies has allowed our creators to dedicate more of their efforts to the true essence of creativity.» He explained that part of the reason for leaning heavily on generative AI this time was to shrink «the development cycle for major titles from the current five years down to two.» He acknowledged that the studio «cannot deny that we made extensive use of AI this time, driven by a desire to deliver a presentation that was visually striking and easy to grasp,» and promised to treat the experience as a learning opportunity for future showcases.
The explanation did little to quell concerns within the Level-5 community. Replies to Hino's post included fans worried about generative technology being used in development at all, fearing that affected games will be permanently tarnished. One popular reply argued that «generative AI is trained on the stolen works of countless artists by tech companies to profit off their work, with the intent of replacing artists,» adding, «By using it you replaced artists. You're profiting off of the skill of artists whose work has been stolen to power this software.» Another post, written in Japanese, said, «I believe the human heart matters more than speed to market; surely it is better to take five years without using AI. If even a single asset is created using AI, the nagging worry—'Is this image, piece of music, or line of dialogue made by AI or a human?'—would never go away. Isn't preserving that trust the most important thing?»
Hino did not offer a specific plan for how Level-5 will adjust its development approach going forward. The Professor Layton and the Curious Village remake, based on the original 2007 game, is currently slated for release on PC and consoles in 2027. Another new entry in the series, New World of Steam, is due out this December.