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tbf it seems to only be for the item pictures in the backpack?
That's a good thing as most just do not care that much about how the items in the inventory look. Still txt2img and im2img AI models can make a lot of noticeable image errors that just using the generic default assets would prevent.
Gamers like images they know but dislike images they do not know when going through their inventory so they do not have to go through everything to find that 1 item they are looking for.
You kind of contradict yourself in your comment. Artists do not get paid for use of their art they get paid to draw then the majority of the time what they draw is owned by the company. So the artist makes nothing over how many times it is used as they do not own the image they drew after being paid to draw it.
Without a steady stream on contracts or being hired by a company the part of "The streets will be lined with starved digital artists" is kind of true either that are their art turns into a hobby instead of a job with a job doing something that pays the bills. The majority of artists are in the 2nd part. Art is a hobby they might or might not get paid for not a job that can pay the bills.
Now onto the "cookie cutter shovelware games" well how would it be any different from using the unity store assets, RPG Maker default and/or DLC assets, and/or any other asset store assets without having anything unique drawn by an artist?
As shovelware already exists in bulkl on steam i do not see how games that are just shovelware will be any different with AI images.
Now am i for artists getting paid? Yes and i do pay some of them that i like their art too but even then 1 of them had to go back to get a normal job to pay the bills even with fanbox subscription money. So even when the artist is paid with monthly income from consumers they might not make enough to pay rent, utilities and food. So it isn't AI image generation that is hurting the artists as much as people just not paying for their art and/or the cost of living going up.
They removed the AI disclaimer, implying they aren't using AI anymore.
As a dev myself it just makes no sense to me. Crafting an original art style is crucial. Look at games like Hades, that has a bunch of clones now, none of them will have the success Hades has achieved. What helps? Originality. Focusing on creating a well-crafted, high quality game.
Whenever I see AI art in a game (none of the games I play have it, but I browse Steam often) I just get a feeling they haven't really tried. They've cut corners. They think so little of their own unique art direction they've otherwise achieved for their endevour that they're willing to, essentially, photocopy some other devs work.
I dunno. The way I see game development is... would you rather be the one making Hades, or making a clone of Hades?
To paraphrase something my wife just said... why should I be bothered playing something you couldn't be bothered making?
True but it's worth noting that the store page had an AI disclaimer, and now doesn't. Since Valve requires AI usage like that to be disclosed it seems they backed out of using AI (hopefully).