Sony and Bandai Namco Test Generative AI in Video Production Pilot

Sony has entered into a collaborative pilot initiative with Bandai Namco Holdings Inc. to explore how generative artificial intelligence can reshape video content production. The announcement emerged during Sony's latest financial results and corporate strategy presentation, where the company outlined its broader AI strategy across entertainment verticals.

Sony President and CEO Hiroki Totoki characterized the technology as "an amplifier of human imagination and a catalyst for new possibilities," while explicitly stating the tools will not replace artists or creators. This positioning mirrors the cautious optimism many entertainment companies have adopted since generative AI entered mainstream production workflows.

According to Engadget's coverage of the announcement, Totoki reported the two companies are already observing "massive gains in speed and productivity per person" through the joint project. However, he also flagged persistent issues with "consistency and controllability" that remain problematic for professionals who require both in their daily work.

The pilot's scope remains deliberately vague. Totoki did not specify whether the initiative focuses on film, television, or gaming content, despite Bandai Namco's primary association with video games. This ambiguity is notable given the contentious nature of AI in game development right now (a topic that has divided studios and unions for years).

Sony Interactive Entertainment CEO Hideaki Nishino provided more concrete details about AI implementation within PlayStation game production. He noted that development cycles—which have increasingly stretched across generations for first-party PS5 titles—can be accelerated through AI tools. The technology also lowers barriers for new developers entering the market.

Nishino acknowledged that AI will create a "meaningful increase in the volume of content," a statement that raises concerns about content saturation. He assured that Sony's studios and intellectual properties remain committed to producing only high-quality games that meet PlayStation standards.

Specific tools already deployed include Mockingbird, a facial animation system used by Naughty Dog and Sony's San Diego Studio. The tool animates 3D models after performance capture, streamlining what was previously a labor-intensive process. AI also handles hair animation by feeding models videos of real hairstyles, then outputting images with hundreds of individual strands modeled.

The PS5 Pro's PlayStation Spectral Super Resolution (PSSR) upscaling feature represents another AI application. The tool uses machine learning to enhance image quality and has been updated for improved effectiveness across third-party and first-party games. This technology will likely carry forward to the PS6, though community reactions to similar AI upscaling efforts suggest potential friction points.

Nishino emphasized that "the vision, the design, and the emotional impact of our games will always come from the talent of our studios and performers." AI is positioned as augmentation rather than replacement, a distinction that matters significantly for labor relations and creative ownership.

Separately, Sony announced a strategic partnership with Bandai Namco and Gaudiy, with both companies investing 10 billion yen in the venture. The collaboration includes five themes, one of which is generative AI. Concrete initiatives already underway include using generative AI image technology within official GUNPLA Gundam model kits.

The broader partnership aims to promote Japanese IP globally, improve IP creation, combine data assets across companies, and build a blockchain-enabled ecosystem for fans and creators. Generative AI serves as the final pillar, intended to "create new entertainment experiences by propelling the research, development, and application of Generative AI."

Sony's quarterly earnings painted a less optimistic picture. The company reported a 46 percent decline in PS5 sales during the fourth fiscal quarter compared to the previous year, selling just 1.5 million units. Rising costs and memory shortages have pressured the company, leading to price increases across the console lineup—the second hike in 12 months.

Whether the AI productivity gains can offset hardware sales weakness remains uncertain. The technology may streamline production, but it cannot manufacture demand for games or consoles. Whether users actually pay for AI-enhanced content remains the real question.

Artūras Malašauskas is an AI Systems Integrator with 20+ years of production-grade web engineering experience. He has designed, shipped, and scaled enterprise Python/PHP systems for logistics, SaaS, and public-sector clients. For the past year, he has focused exclusively on AI integrations: deploying open-source LLMs, building generative media pipelines (image, audio, video), and engineering multi-agent workflows for real production environments. His standard: reproducibility, security, cost-efficient inference—no vaporware. He documents and evaluates emerging AI tooling, separating verified capabilities from marketing noise. Technical editor at: muza-ai.eu, ai-verslas.lt, ai-naujinos.lt Connect on LinkedIn