> I'm not sure how AI could destroy the demand here.
By overwhelming the supply. How can a consumer keep track of what to play anymore?
As an example, I didn't even hear about PBZ until you mentioned it just now. The fact that Valve might occasionally select lottery winners is separate from other forces involved. I would hesitate to highlight the occasional breakout (artificially-promoted) success as some kind of evidence that there is nothing to see here.
> They just need to make good games.
If only we could just do that.
> By overwhelming the supply. How can a consumer keep track of what to play anymore?
This was a problem pre-AI, too. There's more AI-generated slop at the bottom of the barrel but in general people were not discovering games by scrolling through every new release on Steam. And certainly they weren't doing that for anything with the budget of Andromeda or Veilguard.
> As an example, I didn't even hear about PBZ until you mentioned it just now.
I think this is on you more than anything, PBZ has been getting heavily hyped up and currently has 60k viewers on Twitch, early on a Monday in the US, which is pretty damn good. The existence or non-existence of AI games doesn't seem to be impacting anything here.
> the occasional breakout (artificially-promoted) success
All success in the entertainment is "artificially-promoted". Marketing exists for a reason.