Gaming
99% of gamers are excited by the potential of smart NPCs powered by advanced artificial intelligence
Inworld AI, a developer platform for advanced NPC behavior and dialogue, today released the findings of its new report ‘Gamer Attitudes to NPCs.’ In the first study of its kind, the report surveyed over 1,000 gamers in the US aged 16-50 and found high levels of excitement about the potential of AI in video games. Specifically, there was an overwhelming consensus that recent advancements in AI could change the face of gaming and usher in a new era of immersion and interaction with NPCs (non-playable characters) with individual personalities and the ability to converse unscripted voice-to-voice with the help of ChatGPT-like language models and multimodal behavior and perception systems.
The report found that:
- 84% of gamers agree that current NPCs make a positive difference to gameplay
- Over half (52%) dislike repetitive NPC dialogue
- 76% want to see NPCs with better situational awareness
- 78% would spend more time playing games with advanced AI NPCs
- 81% would be willing to pay more for a game with advanced AI NPCs
A long time (not) coming
NPCs have been a part of video gaming from as far back as the 1970s. Despite significant technological advancements in motion capture, graphics rendering, animation, and modeling, the technology that powers the behavior of NPCs has remained stagnant. In other words, NPCs have not developed personalities of their own or the ability to respond to players unscripted. This is despite the fact that the report found that 84% of players today believe NPCs are a crucial addition to gameplay, with an important role in building immersive stories and worlds.
Meaningful interaction promotes excitement and loyalty…
The report highlighted the importance of narratives and storylines to the majority of players. Meaningful interactions with NPCs were heavily sought after, with only 9% of players dismissing or avoiding NPCs during gameplay altogether. A large minority (40%) even admitted to talking to as many NPCs as possible to unlock more story content. Equally, 91% interacted with NPCs on some level and 78% said they would spend more time playing a game with ‘intelligent’ NPCs.
Kylan Gibbs, Co-Founder and CPO Inworld AI said: “ Humans are storytellers. We’re drawn to narratives that help us to make sense of the world around us. The same thing is true in the gaming world – the more immersive and believable a story is, the more we want to stay inside it. So it’s really no surprise that so many gamers want to unlock deeper stories through these NPC interactions.”
…and poor quality promotes frustration and derision
While trolling is most prevalent among younger gamers (39% of 16-24 year olds troll NPCs), across all age groups, it was apparent that gamers willingly and regularly watch NPCs doing ‘stupid’ things – particularly when the characters were two-dimensional and poor quality. The typical NPC characteristics that were most disliked by players were: repetitive dialogue, walking in circles, and inability to adapt to changes in games (disliked by 52%, 33% and 30% of players respectively.) Other traits such as awkward movements and lack of variation also contributed to their disconnect from NPCs.
A missed opportunity for artificial intelligence
Despite these frustrations however, only a tiny minority (5%) view current NPCs as pointless. “Gamers care deeply about NPCs,” continued Kylan. “They have a huge impact on gameplay but gamers are frustrated with the fact that they haven’t evolved. With advanced AI NPCs, there’s an opportunity for games to give players more of the immersive and realistic interactions with NPCs that gamers want.”
A large majority (76%) want better situational awareness from NPCs, and 60% would like to see more interactive dialogue and a sense of humor. Understanding these requirements and being able to cater to them proved to be an appealing concept for almost all gamers surveyed. The report noted that 79% of respondents said they were excited by the promise of AI NPCs, with 88% believing they would make a game more immersive. This is in tandem with 99% believing the inclusion of advanced AI NPCs would positively impact gameplay, and 81% willing to pay for the experience.
Florin Radu, Head of Partnerships, concluded: “Advances in AI have real potential to bring NPCs to life and revolutionize the way gamers interact with them. At Inworld, we’re leveraging this technology to make NPCs smarter and more interactive, so as to enrich game narratives and make gameplay more immersive. It’s little surprise that gamers are excited by the possibility of having a unique experience with NPCs every time they play – and it’s precisely this excitement that we think will result in many more developers including advanced AI NPCs in their games in the near future.”
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The German games market has returned to growth: following a year in which revenue from games, games hardware and online gaming services declined for the first time after many years of growth, the first six months of 2025 have once again seen an increase in sales revenue. 4.6 billion euros in revenue was generated, which equates to an increase of 4% compared to the same period in the previous year.
This was announced by game – The German Games Industry Association at a press conference in advance of the opening of gamescom next week. The sources of this data are the market research firm YouGov and data.ai (a Sensor Tower company). Games hardware enjoyed the biggest increase during the first half of 2025. Propelled among other things by the launch of the Nintendo Switch 2, revenues in this area grew by 17%. The online gaming services market segment also increased, by 4%. Games, on the other hand, experienced a small decline of 2%, to 2.7 billion euros.
“The German games market’s growth in the first six months of 2025 sends a powerful signal for the start of gamescom. This year’s event has also set a new record for the number of exhibitors. Combined with the increase in exhibition space and the many top companies expected to attend this year’s event, gamescom is set to drive even more growth in the German and international games market. This year’s theme – ‘Games – perfect entertainment’ – is fully in keeping with this boost, as 44 million Germans view games as the entertainment of our age. And not just for themselves: the vast majority of video game players believe that games are particularly good for bringing people of all ages together. It is yet another way that gamescom will be the perfect place to be,” said Felix Falk, Managing Director of game – The German Games Industry Association, which is a co-organiser of gamescom.
The theme of gamescom 2025 – “Games – perfect entertainment” – reflects the reality in Germany, as was underscored by the findings of a representative survey conducted by the market research company YouGov: some two thirds of Germans consider video games to be the entertainment of our age. This equates to around 44 million people. It is a finding that is also supported by the experiences of the people playing video games. Nearly all of them say that they enjoy playing games (94%), find them entertaining (93%), and see them as a good way to relax (91%). In fact, 86% of video game players say that games put them in a good mood, and 8 in 10 players spend less time thinking about crises or worries thanks to games.
The average age of video game players in Germany is now nearly 40 – and it is continuing to rise. This is because the largest increases in the number of players are in the older age groups. Games have long since established themselves as a medium for all generations. The video game players think so, too: 85% of them say that games offer something for every age group, while 88% enjoy playing with other family members. 79% of players in Germany believe that games can help to bring younger and older people together, and three quarters of players think that playing games together as a family can help people to gain a better understanding of digital media.
The post German Games Market Grows in the First Half of 2025 appeared first on European Gaming Industry News.
The Avalanche Foundation and Helika, a leading provider of technical and creative solutions for the video games industry, have officially launched their joint video game accelerator program and opened applications for the first cohort.
The newly announced strategic partnership is designed to engage both Web3-native studios and traditional game developers exploring blockchain integration. The accelerator aims to identify and support the next generation of studios building at the frontier of blockchain-based gaming.
The program is focused on product interaction and is designed to discover, support, and fast-track promising studios and projects building on the Avalanche blockchain. It will provide selected projects with unparalleled access to resources, mentorship from industry leaders, technical support, activations, and funding opportunities for qualifying or top-performing teams.
The accelerator is open to seasoned teams building high-quality, engaging experiences across platforms, from mobile to desktop and everything in between. Projects with prior traction or cross-platform aspirations are especially encouraged to apply.
The program will run for 3 months, with virtual onboarding and IRL showcases planned across major gaming and blockchain events.
What selected teams get:
Funding & Resources: $25,000 in initial support and up to $125,000 in additional funding for qualifying or top-performing teams.
Expert Guidance: Mentorship from game veterans, blockchain experts, and industry leaders through group sessions and 1:1 consultations.
Analytics Support: Comprehensive analytics solutions to track performance, improve retention, and optimize monetization strategies.
Blockchain Integration: Dedicated assistance for integrating with the Avalanche blockchain and optimizing technical performance.
Community & Growth: Activations with partner communities and platforms and support in player acquisition, community building, go-to-market strategies.
Helika Advisory Access: Access to specialized experts from Helika’s network for tailored support.
Ecosystem Access: Direct connection to a vibrant network of developers, investors, publishers, and Web3 enthusiasts.
Showcase Opportunities: A final Demo Day event to present games to investors, publishers, and ecosystem partners.
“We are excited to partner with the Avalanche Foundation to create a world-class accelerator for Web3 gaming. Avalanche’s robust and scalable infrastructure makes it an ideal environment for innovative game development. Studios need tools that work, data that matter, and real support from people who understand what it means to build in this space — this accelerator provides all of that, plus a direct line into a powerful Web3 ecosystem,” said Anton Umnov, Founder and CEO of Helika.
“Avalanche is focused on the long game. There’s no shortage of flashy ideas. What’s missing is the support that helps studios turn those ideas into real, playable, scalable games. Avalanche has long been the go-to chain for speed and innovation, and now we’re channeling that energy into the future of gaming, supporting teams who understand the nuance of player experience, community building, and long-term value creation,” said Parker Heath, Ava Labs Gaming Partnerships Lead.
Avalanche plays host to a vibrant lineup of video games, including Off The Grid and Maple Story Universe, all pushing the boundaries of what’s possible in blockchain-powered play. Thanks to its customizable Avalanche L1s, lightning-fast transaction speeds and low fees, developers can tailor unique environments for their games without compromising on user experience.
Helika has become a cornerstone for modern game studios, equipping developers with real-time insights into player behavior, on-chain economies, and engagement metrics. From Proof of Play and Parallel to Nexon, Ubisoft, and Com2Us, Helika’s platform is shaping how developers build, balance, and scale their games in real-time. This accelerator takes that impact further by embedding support into the earliest stages of development when it matters most.
The post Avalanche and Helika Launch New Gaming Accelerator – Applications Now Open appeared first on Gaming and Gambling Industry in the Americas.
Gaming
Unlocking games revenue: player behavior and payment trends in the west | Newzoo x Tebex Whitepaper
Tebex, the leading payments solution for gaming, reaching $1Bn in processed payments and powering over 30,000 web stores, is launching the first industry-wide look at payment trends in EU and NA with Newzoo on Tuesday, August 12 at 09:00 AM CEST.
Why This Data Matters
In a maturing Western games market with slowing payer growth (North America: +1.1% CAGR, Europe: +3.1% CAGR, 2023-2027), studios must shift from acquiring new players to maximizing value from existing ones. The data reveals critical insights into player motivations, spending patterns, and payment preferences, enabling developers to craft targeted monetization strategies that boost revenue, enhance retention, and align with player expectations.
Global Market Snapshot (2025)
- Market Size: $188.9B (+3.4% YoY), with North America ($52.7B, 28%) and Europe ($33.1B, 18%) driving 46% of global spend despite housing only 20% of players (3.54B total).
- Payer Spending Power: North America leads with $324.9 avg. annual spend per payer; Europe averages $125.4 ($170.0 Western, $51.6 Eastern).
- Value: High per-payer spend in Western markets highlights the opportunity to deepen monetization through tailored strategies.
Spending Motivations Drive Strategy
- North America: 34% of payers spend to unlock exclusive content, 29% for personalization (character customization), reflecting a desire for self-expression. Studios can capitalize by offering unique cosmetics and content packs to drive engagement.
- Europe: 28% prioritize deals/offers, 21% value ad-free experiences, showing value-driven behavior. Discounted bundles and subscription models can increase conversion in this region.
- Value: Understanding regional motivations allows studios to align offerings with player priorities, enhancing loyalty and spend.
Diversified Spending Patterns
- North America: 27% of payers invest in content packs, power-ups, and in-game currencies, with subscriptions (24%) and battle passes (23%) also strong.
- Europe: In-game currencies and content packs lead (21% each), followed by subscriptions (20%) and gear/time-savers (18% each).
- Value: Diverse spending across virtual goods underscores the need for varied monetization options to capture a broad range of player preferences, boosting average transaction value (ATV).
Payment Methods Unlock Higher Spend
- ATV Trends (2025): Overall, ATV rose from $30 (2024) to $40. BNPL (North America: $85.0, Europe: $72.0) and crypto (North America: $94.8, Europe: $111.6) outperform cards (North America: $52.2, Europe: $42.7).
- Dual-Method Impact: Players using cards + BNPL/crypto maintain transaction frequency while spending more.
- Value: Offering alternative payment methods like BNPL and crypto can significantly increase ATV, especially in Western markets, without sacrificing transaction volume.
Revenue by Platform and Genre
- Microtransactions (MTX): Drive 49% of PC and 52% of console revenue in North America; 42% (PC) and 51% (console) in Europe. Mobile is near 100% in-game revenue.
- Top Genres: North America favors shooters, Europe prioritizes sports, with RPGs and puzzles strong in both.
- Value: High MTX revenue and genre preferences guide studios to focus on live services and region-specific content to maximize engagement.
Strategic Takeaways
- Deepen Monetization: With modest payer growth, studios must focus on existing players by offering personalized content and value-driven deals.
- Diversify Payment Options: Cards and wallet still dominate in volume, but integrating BNPL and crypto can unlock higher ATV, especially in Western markets.
- Align with Player Values: Transparency, fairness, and seamless payment experiences reduce churn and build loyalty in a competitive market.
- Understand the why and how players spend: NA players are more likely to spend for personalization and self-expression, while EU players are more value-conscious, prioritizing deals and an ad-free experience.
Quotes
Liam Wiltshire Head of Payments & Compliance at Tebex
“The future of gaming is about flexibility – meeting players where they are, with the methods they trust.”
This quote summarizes the importance of adapting to player-preferred payment methods like wallets, BNPL, and crypto to enhance accessibility and trust.
“Virtual currencies and microtransactions are no longer just revenue streams – they’re becoming strategic levers for retention and differentiation.”
This emphasizes the evolving role of microtransactions beyond revenue, focusing on engagement and player retention.
“Today’s players want to know what they’re paying for – and why. How you monetize matters more than ever.”
This highlights the need for transparency and fairness in monetization to build player trust and loyalty.
The post Unlocking games revenue: player behavior and payment trends in the west | Newzoo x Tebex Whitepaper appeared first on Gaming and Gambling Industry in the Americas.
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