AI interactive films and games begin to demonstrate willingness to pay as production barriers for small teams may fall
CITIC Securities Construction Investment believes AI tools are reducing production investment and the cost of branching narratives in interactive films and games. Products such as Survivor's Notes provide early examples of paid demand, but free prototypes, online attention and paid sales should be assessed separately.
Original source：中信建投证券First published on Unhidea：Original source date：
Key takeaway
AI gives smaller teams an opportunity to create complete interactive narratives. The commercial opportunity depends on whether they can bring tools, scripts and interactivity together into products with lasting appeal.
Which products are beginning to demonstrate willingness to pay?
The video team behind Survivor's Notes had approximately 6 people and spent 4 months producing approximately 700 minutes of content, using AI-generated visuals and live voice acting for every character. Third-party estimates cited in materials dated 14 October put sales above 10 thousand copies, with a positive review rate of 89%.
Don't Ask About the Mortal World, which combines AI-generated visuals, NPC dialogue, character development and exploration, remains in early access. Its development team disclosed on 13 October that sales had exceeded 260 thousand copies, providing another example of paid demand.
The Little Prince: Journey of the Stars, made by an individual creator in 16 days, attracted 1.16 million views on an early post, demonstrating online attention. A free deduction mini-game completed in approximately 30 minutes demonstrated the ability to produce a prototype quickly. These are different forms of validation from paid sales of long-form works.
Which costs is AI changing in interactive films and games?
Compared with traditional live-action interactive films and games, AI could reduce investment in live-action filming and lower the costs of producing assets and experimenting with new narrative branches, shortening production cycles. On that basis, CITIC Securities Construction Investment expects the pool of creators to expand from teams with filming resources to small and midsize creators and game teams.
Model capabilities are extending from generating individual assets to the production process: programming and tool operation can contribute to modeling and development, while video models improve camera control and image quality. Creators may therefore be able to test shots and adjust character performances more quickly, and reuse character and scene designs.
Tools lower the barrier to production. The brokerage is more focused on teams that can consistently deliver high-quality content: they must integrate tools into their workflows and bring scripts, 3D assets and interactive mechanics together into complete products.
Which companies have a foundation for participation?
The brokerage is watching three categories of companies: IP owners, producers and platforms. Among IP owners, Mango Excellent Media has already adapted drama and variety-show IP into interactive products. Among game companies, Shengtian Network has experience developing and publishing live-action interactive games.
Production tools and products are at different stages: Baotong Technology disclosed that two interactive narrative game projects had completed development and entered commercial validation; Dianhun Network listed an AI-driven character-development game with multiple endings as an operating product.
In distribution, Tencent's WeGame has a foundation in publishing live-action interactive films and games, while NetEase's Yi Ci Yuan already has a foundation in works with multiple storylines, creation tools and community distribution. Companies with experience in engines, 3D production and distribution may expand their participation.
