After a few challenging years, the game industry is entering an exciting new era. In this episode of Expert Insights, Markus Hjort, CTO and Co-Founder of Bitmagic, discusses how studios can leverage generative AI, external tooling, and efficient iteration to succeed amid growing competition. Finland-based Bitmagic is at the forefront of this shift, using cutting-edge AI to turn text prompts into fully interactive multiplayer 3D games, combining deep technical expertise with a passion for innovation.
“We’re already in the future”
When we asked Markus about what excites him most for the coming year, his answer was confident and clear:
“We’re already in the future,” he says. “What we’re building at Bitmagic is technically possible today, but 2025 is when the technology truly converges. Costs are falling, competition is intensifying, and generative AI is significantly improving. That’s when it’ll really take off.”
Generative AI has evolved from a trendy concept to a critical component for game development. Markus believes studios that can effectively harness AI will significantly accelerate their content creation and iteration speeds, gaining an essential competitive advantage.
“With small teams, rapid testing and iteration are crucial. You simply don't have the luxury of big budgets or extensive timelines.”
Tooling up without weighing yourself down
According to Markus, one notable shift for game studios is the increasing reliance on external tooling, especially among smaller and emerging teams.
“If you’re just starting out, external tools are essential,” Markus explains. “Getting your game to market quickly means focusing your resources on what makes your game unique, while external solutions handle the rest.”
"Investors appreciate teams that know exactly where to invest their resources. Demonstrating wise use of external tooling versus building everything internally signals strategic maturity."
Markus Hjort, CTO & Co-Founder at Bitmagic
Reflecting on past experiences, Markus recalls when a 30-person team was needed to build everything internally. “That kind of scenario just doesn't make sense anymore," he says. "Today, the market offers countless powerful external tools, letting studios prioritize core creative work.”
This approach not only streamlines development but also resonates positively with investors.
“Investors appreciate teams that know exactly where to invest their resources. Demonstrating wise use of external tooling versus building everything internally signals strategic maturity.” Markus emphasizes.
Generative AI: The multiplier effect
Generative AI frequently comes up as a transformative force in Markus’s perspective—especially for live service games.
“AI is a force multiplier," he explains. “From creating compelling ad campaigns to rapidly prototyping gameplay, generative AI lets small teams do more with fewer resources.”
Markus stresses that adopting generative AI will be crucial in maintaining competitive speed, especially as the live service game sector evolves rapidly.
“Studios embracing AI can quickly iterate and refine their offerings. Speed and intelligent adaptation will set successful studios apart.”
Bitmagic Mini transforms your ideas instantly into playable web mini games. Go to mini.bitmagic.ai and describe the character you want to play!
Soft launches return, competition intensifies
Metaplay’s recent industry surveys indicate that 90% of studios are planning launches or soft launches in 2025, marking a significant shift from recent industry hesitance.
“Studios clearly sense it's time to launch,” Markus notes. “However, this also means intense competition. Finding and retaining your audience quickly becomes even more critical.”
His recommendation? Act decisively and swiftly:
“The barriers to entry are lower than ever, but success still demands rapid testing, quick iterations, and smart audience targeting. Studios that master this approach will stand out.”
The evolving investment landscape
As studios regain momentum, the investment scene is also reawakening. Markus describes a cautious but growing optimism among investors:
“We recently closed our seed funding, and we see similar trends among our peers. There’s capital ready to move after a period of hesitation, and now it’s actively seeking promising opportunities.”
Markus also highlights a notable shift in funding sources, with increased investment from previously underrepresented regions:
“New gaming hubs and investment funds indicate a diversification in funding sources, propelled by the remote work trend and the decentralization of talent pools.”
Embracing the Renaissance
As we're looking towards the year ahead, the games industry stands at a crossroads. There's a lot of potential, but the competition is tougher than ever. The studios that succeed will be those who can strategically use external tools, leverage generative AI, and decisively target their audiences.
Markus encapsulates the prevailing sentiment perfectly:
“The past few years were quiet, but now the industry is buzzing with renewed activity. It’s an incredibly exciting time, and this year promises to be especially transformative.”
At Metaplay, we believe the Game Development Renaissance represents a new chapter for game creators everywhere—a chance to build sustainably, innovate rapidly, and flourish together. Stay tuned as we continue to share insights and stories from industry leaders driving this exciting new era.
Get all the data behind the Game Development Renaissance in Metaplay's flagship industry report here.
