Speculation about Nintendo’s stance on generative AI escalated last week after Japanese politician Satoshi Asano suggested the gaming giant was lobbying the government to restrict the technology.
In a social media post, Asano alleged that Nintendo was both “avoiding using generative AI to protect its IP” and “engaging in lobbying activities with the government.”
The statement quickly gained attention before being deleted.
In an unusual move, Nintendo directly addressed the rumour with a statement on X.
The company clarified:
“Contrary to recent discussions on the internet, Nintendo has not had any contact with the Japanese government about generative AI. Whether generative AI is involved or not, we will continue to take necessary actions against infringement of our intellectual property rights.”
Asano later issued a public apology, admitting responsibility for spreading misinformation.
He wrote,
“I deeply regret my own failure to verify the facts adequately.”
The confusion over Nintendo’s involvement comes during wider industry debate around generative AI, particularly following the turbulent launch of OpenAI’s Sora 2 video model.
Within days of release, users shared clips featuring unauthorised reproductions of well-known characters, including Pokémon, Studio Ghibli creations, and other copyrighted works.
One widely shared video depicted an AI-generated Sam Altman joking, “I hope Nintendo doesn’t sue us,” as virtual Pokémon ran across the screen.
The backlash has already pushed OpenAI to review its content policy.
Nintendo is widely recognised for defending its intellectual property with little compromise, but its long-term stance on AI remains less defined.
Company president Shuntaro Furukawa has previously said Nintendo is cautious about adopting generative AI, pointing to concerns over copyright protection.
At the same time, he noted the company remains “open to utilising technological developments” if they enhance creative potential.
Nintendo of America president Doug Bowser, who is set to retire later this year, offered further clarity earlier in 2025.
Speaking to CNBC, he explained:
“If we think about just technology in general to start with, as we look at technology we always want to make sure the technology we may be leveraging – whether it is to develop our games [or] in our devices – it’s going to create a better gameplay experience. It starts there… that’s a very important part of our decision making process, and how to use AI.”
Despite Nintendo’s caution, the Japanese gaming industry is moving ahead.
Surveys indicate over half of Japanese game companies are already using AI in development, while a recent GDC report found nearly 50% of developers globally work with AI tools in some capacity.
Concerns remain widespread: 84% of developers surveyed expressed unease over how these tools are applied, particularly around copyright and job security.
Meanwhile, analysis of Steam titles this year shows an 800% rise in games disclosing generative AI use.
Coinlive believes this episode highlights a critical question facing entertainment companies worldwide: will intellectual property owners push back against AI, or will they find ways to embrace it without losing creative control?
Nintendo’s firm denial demonstrates its protective instinct, but also its reluctance to shut the door completely.
As more studios integrate AI into production pipelines and regulators struggle to define clear rules, companies that own beloved franchises face mounting pressure to either adapt or risk being left behind.
The balance between innovation and protection may well define the next era of the video game industry.
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