Level-5 CEO apologises after AI use in recent game trailers

• Hino said the studio uses AI to process and digitise human-created artwork.
• Level-5 says its released games contain no simplistic AI-generated output data.
• The studio is targeting a reduction in major game development from five years to two.

Level-5 president and CEO Akihiro Hino has apologised to fans after the Japanese studio confirmed generative AI was used in its recent game reveals.

Level-5's upcoming Yo-Kai Watch and Professor Layton titles were showcased during last week's Nintendo Direct, the day after the Legend of Zelda Direct fully unveiled the Switch 2 Ocarina of Time remake.

As reported by Video Games Chronicle, Level-5's appearance in the Nintendo Direct faced criticism after social media users gathered evidence suggesting widespread use of generative AI.

Hino has since confirmed the use of AI, saying it was introduced to make the presentation “more spectacular”, but acknowledged that the company had gone too far.

AI experiment

In the Nintendo Direct, long-awaited title Professor Layton and the New World of Steam received a trailer and a December 2026 release date. A remake of 3DS game Yo-Kai Watch 2, called Yo-Kai Watch 2: Haunted Domain, was also revealed for Switch 2.

Hino stressed that scenarios, character designs and basic settings for Level-5’s works are created by humans. He said AI is also being used to digitise “creative work made by people”, including converting original artwork into polygons.

“It was entirely due to the desire to make the presentation more spectacular that we incorporated processing that also served as an experiment using the latest AI,” he explained in a post.

“It appears that some people felt uncomfortable about this, so I deeply apologise.”

Hino also insisted that “no simplistic AI-generated output data is included in the games that are released”, and explained that the studio is experimenting with AI as it attempts to reduce the development period for major titles from five years to two, adding that the company is “struggling forward”.

He said Level-5 would take the response from fans as a lesson.