Former Xbox Exclusive Apologizes for AI Race Controversy

Party animal The studio, Recreate Games, has apologized for running a generative AI video competition and has asked for players' views on the future of the competition. As the name suggests, Party animal is a party game that first released as an Xbox exclusive in 2023 and has continued to see modest success over the years as a family-friendly online brawler. Players choose from a list of hard-to-control, top-heavy animals and try to knock out the competition before they go chicken.

On May 13, 2026, Recreate Games announced that it would be holding an AI video contest with a total prize pool of $75,000 in cash. The studio called the contest its first contest focused on the use of generative AI, asking people to produce videos no longer than five minutes using the software. Promoting the use of generative tools, the post reads, “In the past, ideas like these could only exist in your head. Now, with AI, they finally have a chance to become reality.” Party animal players immediately took to the comments section to express their disapproval, saying the competition devalues human effort and art. This kind of discussion is common among game developers and players pushing back against AI.

Party animals apologize for AI competition

The Party animal studio took to Twitter to address what it describes as the discussion surrounding the AI competition. Recreate Games used the post to both apologize for disturbing fans of its game and for not communicating clearly with players before the competition started. The post claims that the studio wanted to base the competition on AI to “lower the barrier to creation,” suggesting that generative AI would allow people who don't know how to edit, model, or animate to create videos. It goes on to compare AI to accessibility tools, saying the team “wasn't trying to dismiss handmade work or disrespect creators.”

Recreate Games then created a poll on the social media platform where fans asked how, or if, the studio would proceed with the competition. The popular party game creators offered to cancel the AI video contest, change it to a non-AI contest, or keep the AI contest but also add a human art category. The vote ended with about 58% of the nearly 16,000 votes calling for the contest to be cancelled. However, comments were mixed, with many saying they cannot support generative AI in any form, and others echoing statements such as Sony's CEO claiming that AI is a powerful creative tool.

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This certainly isn't the first time a game studio's use or promotion of generative AI has caused controversy among its fan base. Last time the fans shouted NTE: Neverness to Everness for the use of AI, and the studio admitted to using generative AI software to create background art and environmental assets. Hotta Studio said it would replace the images and video that players had correctly identified as produced by generative AI and promised that the team champions human creativity.

Who is that character?

Identify the silhouettes before time runs out.

Who is that character?

Identify the silhouettes before time runs out.

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Despite how new generative AI tools are in the tech space, their use in game development has been controversial for years. Even major publishers like Activision have admitted to using generative AI in Call of Dutydespite the huge number of artists and creative employees in its studios. AI tools are constantly changing, and while it's still relatively easy for humans to distinguish between generated images and human art, it's likely to become more difficult to tell the difference in the future. It's not uncommon for studios to refuse to disclose their use of AI until they face backlash for it. It is expected that companies will continue to use these software tools going forward.