[Edaily Reporter An Yu-ri ] “We’re entering an era where the formulas that used to guarantee success are no longer working. It seems the gaming industry is facing difficulties, such as layoffs at North American companies. I’ve been thinking a lot about how we need to take on new challenges to bring you completely new games.”

Kim Hyung-tae, CEO of #SHIFT UP, offered this assessment of the current state of the global gaming market at the Tokyo Game Show (TGS) on the 18th. CEO Kim revealed that his perspective on users and his philosophy of game development changed after experiencing “Red Desert,” a recent global hit from PearlAbyss Corp.(263750). “Watching ‘Red Desert,’ I realized that users play actively and with passion when it comes to games they love,” he said, adding, “I came to understand that users are wise.”

CEO Kim continued, “I felt that it’s necessary for games to approach players with a sense of challenge rather than simply guiding them kindly,” explaining, “After seeing *Red Desert*, I realized that this is what makes a game worth diving into.”

Amid an ever-changing landscape, SHIFT UP is also expanding its platform boundaries to reach a broader audience. At this year’s TGS, SHIFT UP unveiled the first playable demo of *Stella Blade Complete Edition* for Nintendo Switch 2 at the Sega/Atlus booth.

*Stella Blade* will launch its Switch 2 version on November 6 to target a new user base. By June 2025, *Stella Blade* had surpassed 3 million cumulative global sales across its PlayStation 5 (PS5) and PC versions.

CEO Kim stated, “As we expand our platform reach, I’ve been reminded once again that many new players will have the opportunity to experience this game,” adding, “I believe this multi-platform approach will be positively considered in our future development strategies.”

The Switch 2 version focused on maintaining the original action feel in both docked and handheld modes. It runs at 60 frames per second in most sections and has been optimized to maintain around 50 frames per second in certain sections. Controller responsiveness and feedback were also implemented to be similar to those on existing consoles.

The release platforms for future titles have not yet been decided. However, the company plans to actively utilize the technology and experience gained while developing this Switch 2 version. CEO Kim emphasized, “We intend to take the stance that we’ll go anywhere as long as there’s technical capability and an audience,” adding, “However, if that means we have to sacrifice the game itself, we’ll likely prioritize the game over everything else.”

The company is also building its in-house publishing capabilities. SHIFT UP has been actively preparing for this business for about a year. It is considering taking direct responsibility for the online distribution of its self-developed titles and boxed games developed by its subsidiary, Unbound. The company stated that it may partner with specialized external firms for the distribution of limited editions or boxed games in certain regions.

“Artificial Intelligence: An Inevitable Change of the Times”

The DIO Corporation also viewed artificial intelligence (AI) as an inevitable change of the times. However, CEO Kim apologized for the negative reaction from users following the recent release of an AI music video featuring characters from the sequel, *Blood Rain*.

CEO Kim bowed his head and said, “When we released the results of our internal research on AI usage as official content, we failed to clearly distinguish between experimental work and actual game content,” adding, “I am sorry to have shown the results of this somewhat disconcerting experiment to those who have loved *Blood Rain*.”

He went on to emphasize, “AI will inevitably be used in some form, and I believe it is our important duty to clearly communicate how we intend to use it and how we plan to utilize it effectively.”

He also cited the changes in the hardware market brought about by AI as a challenge facing the gaming industry. CEO Kim said, “I feel deeply regretful that users now have to pay higher prices to enjoy games (due to console price hikes),” adding, “This is because the gaming industry is the sector where hardware advancements are needed more than anywhere else.”

Conversely, CEO Kim predicted that as AI-based graphics technology advances, it could potentially reduce dependence on hardware in the long term. He also highlighted “DLSS 5,” recently unveiled by NVIDIA. DLSS 5 is a generative neural network rendering technology for real-time graphics that NVIDIA released in September 2026.

He said, “I believe that improving quality may come from software enhancements rather than hardware updates,” adding, “If pixel processing can be handled through software, I think we could set a direction that reduces our reliance on hardware.”

He also shared his views on concerns raised by some that DLSS 5 could arbitrarily alter a creator’s work. “If it’s developed in a developer-friendly way that allows for some control over the artistic direction, it could be quite an interesting technology, but it won’t fundamentally change the core of the work,” he said.

CEO Kim emphasized that, no matter how times change, it is ultimately the users’ choices that determine a game’s success or failure. During the early stages of *Stella Blade*’s development, there was a time when the company had only enough funds left to pay employee salaries for about three months. There were also proposals suggesting that developing an MMORPG would result in a higher valuation for the company. However, SHIFT UP steadfastly continued development of the console game *Stella Blade*.

CEO Kim emphasized, “It was the choices of our users that proved the development of *Stella Blade* was the right path,” adding, “As games targeting the global market—rather than just Korea—emerge, the Korean gaming industry is clearly changing. This is a change brought about by our users.”