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IMO this will be the differentiating feature for the next generation of video game consoles (or the one after that, if we’re due for an imminent PS6/Xbox2 refresh). They can afford to design their own custom TPU-style chip in partnership with AMD/Nvidia and put enough memory on it to run the smaller models. Games will ship with their own fine tuned models for their game world, possibly multiple to handle conversation and world building, inflating download sizes even more.

I think fully conversational games (voice to voice) with dynamic story lines are only a decade or two away, pending a minor breakthrough in model distillation techniques or consumer inference hardware. Unlike self driving cars or AGI the technology seems to be there, it’s just so new no one has tried it. It’ll be really interesting to see how game designers and writers will wrangle this technology without compromising fun. They’ll probably have to have a full agentic pipeline with artificial play testers running 24/7 just to figure out the new “bugspace”.

Can’t wait to see what Nintendo does, but that’s probably going to take a decade.



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