
Cygames under fire for Generative AI loophole.
Cygames AI Backlash: Umamusume Fans Doubt 'Prior Notice'
Fresh off a Game Awards win, Cygames faces backlash over generative AI plans, with fans fearing a "prior notice" loophole will ruin the studio's hand-drawn style.
Highlights
- Cygames faces backlash over its new generative AI subsidiary despite Umamusume's recent success.
- The developer's apology failed due to a "prior notice" loophole implying future AI implementation.
- Fans fear machine-generated assets will ruin the studio's signature hand-drawn aesthetics.
Fresh off a monumental year that saw Umamusume: Pretty Derby take home the Best Mobile Game award at The Game Awards 2025, developer Cygames has found itself at odds with its own community. The studio is currently navigating a significant PR crisis after releasing a statement regarding its stance on generative AI. While the company apologized for the anxiety caused by its recent business moves, it stopped short of promising a permanent ban on the controversial technology, leaving fans skeptical about the future of the franchise just as it achieves breakout popularity in the West. The controversy began earlier last week when the company unveiled a new subsidiary, Cygames AI Studio, Inc.
The announcement, originally in Japanese, detailed plans to utilize generative AI as a "key technology" to transform accumulated knowledge into new creative forces. The press release stated that the goal was to create "safe and secure" AI tools to boost developer creativity, drawing on the experience it has cultivated in game development, rather than simply improving efficiency. However, the news immediately sparked a backlash from the player base.
Fans feared the introduction of low-quality, machine-generated assets, often referred to as "AI slob" would compromise titles known for their high-quality, hand-drawn anime aesthetics. Social media was awash with players unhappy that the creators of one of 2025's breakout hits seemed to have strayed to the dark side. The outrage was severe enough that Cygames felt compelled to respond.
The "Prior Notice" Loophole
In response to the outcry, Cygames released an official statement on X. The company apologized for the "concern" caused by its simplified initial announcement, acknowledging that it had overlooked the ongoing societal debates regarding the ethics of generative AI. They stressed that all existing game art stems from their team's manual expertise and reiterated their respect for creators.
Despite these assurances, one specific sentence in the apology has done more harm than good. The statement read, "Furthermore, we won't implement generative AI into our products without prior notice." Players have interpreted this specific qualifier, "without prior notice," as a loophole rather than a definitive refusal. The fear is that Cygames intends to use the technology eventually, but is simply promising to add a disclaimer when they do.
Reddit and community hubs have been critical of the wording, accusing the developer of using corporate language to protect future business interests. The statement continued with an attempt to reassure fans, claiming, "We hold in the highest regard those who love games, as well as the dignity, passion, and heart of the creators and artists who act as the architects of gaming culture."
Umamusume's Success and Industry Trends
Naturally, the statement hasn't gone down well with players. Users on social media were quick to point out the contradictions. Twitter user Altair298 questioned the logic, asking, "You say it won't be used in your products. So, where exactly would you use it then? What is the point of the establishment of this company?" Another user, Gravesicle, added a blunt translation of the company's stance: "'Without prior notice,' so they're still going to do it."
The timing of this controversy is particularly poor for Cygames. Umamusume: Pretty Derby and Granblue Fantasy are franchises built entirely on the appeal of their character designs and high-production values. With Umamusume experiencing a surge in Western popularity throughout 2025 and securing a major win at The Game Awards, the spotlight is brighter than ever.
Cygames is not alone in navigating this minefield. The Japanese gaming industry has seen a surge in interest regarding AI implementation, with major publishers like Square Enix and Sega previously expressing aggressive interest in the technology. As recent controversies surrounding titles like Arc Raiders and Black Ops 7, where the use of generative AI faced severe backlash for lacking "soul."
For now, Umamusume remains free of generative AI art. But with the new AI Studio now operational and the developer’s carefully worded statement on the record, players are keeping a watchful eye on every new update, waiting for that "prior notice" to appear.

Author
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
Krishna Goswami is a content writer at Outlook India, where she delves into the vibrant worlds of pop culture, gaming, and esports. A graduate of the Indian Institute of Mass Communication (IIMC) with a PG Diploma in English Journalism, she brings a strong journalistic foundation to her work. Her prior newsroom experience equips her to deliver sharp, insightful, and engaging content on the latest trends in the digital world.
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