AI Could Quadruple Game Concept Testing, Says Mag Interactive CEO — How Artificial Intelligence Is Reshaping the Industry

The global games industry is witnessing a productivity revolution driven by artificial intelligence. Mag Interactive, the Swedish word and trivia game specialist, reported in its Q3 2025/26 financial results that AI has enabled the company to test new game concepts four times faster than previously possible — scaling from 5 to 6 concepts per year to the same number per quarter.

CEO Daniel Hasselberg revealed that the studio had two games in active testing over the past quarter, with three more concepts expected to enter testing this month. Referring to the productivity gains from AI, he said: “The speed at which we can prototype, iterate and evaluate new ideas continues to improve rapidly.”

The implications for the broader industry are significant. “Historically, testing five to six game concepts per year would have represented a high pace for a company of our size,” Hasselberg continued. “Today, we see a realistic path toward testing a similar number of concepts every quarter.”The ability to test more ideas increases the probability of finding successful products while reducing the cost and risk associated with innovation.

Mag Interactive’s experience reflects a wider industry shift. Morgan Stanley Research projects that consumers will spend more than $275 billion on video games in 2026, with the industry reinvesting over $50 billion into development and operations. AI tools could reduce development costs by more than 40 percent — saving over $100 million per AAA project. Across the industry, AI could unlock approximately $22 billion in additional profits for game companies.

From major publishers to indie studios, AI is reshaping the entire development pipeline. Laura Miele, President of Enterprise at EA, recently noted that AI “reduces repetitive and tedious work for developers, significantly improves prototyping efficiency, and accelerates creative output”. Capcom, while stating it will not use AI-generated assets in final game content, is actively exploring AI applications across art, audio, and programming to boost development efficiency and productivity. In China, 60% of game studios are already using AI technology within their development pipelines, according to a 2025 report from Niko Partners.

For Mag Interactive, the efficiency gains are already translating into financial performance. Net sales rose 4% year-on-year to 65,302 KSEK (~$6.75m), with Adjusted EBITDA of 13,401 KSEK (~$1.4m). ARPDAU increased 35% year-on-year to 8.8 US cents. QuizDuel and Wordzee remain the company’s top revenue drivers, while its latest release Crozzle “returned to growth” in Q3.

Hasselberg described the combination of AI-driven efficiency and the company’s shared technology platform as “a powerful foundation for future growth”. With game development cycles stretching from 18 months in the PS2 era to five years or more today, the acceleration AI provides is becoming a critical differentiator.

As Morgan Stanley analysts put it: “Against a backdrop of stable industry growth, AI adoption could materially enhance both productivity and the scope of future game experiences.”For mid-sized studios like Mag Interactive, AI means not just testing more ideas faster — but dramatically improving the odds of finding a hit while keeping costs and risks under control. That, perhaps, is AI’s most valuable contribution to the gaming industry.