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No AI Art Allowed, Code Assistants Still Welcome

April 21, 2026
in Australian Crypto News
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  • Game developer and creator of the Playdate console, Panic Inc., has banned games made using generative AI tools, such as ChatGPT and MidJourney, from its Console storefront.
  • The ban will apply to games which have used AI tools for the creation of creative elements such as art, writing and music — the use of AI coding tools will still be allowed but will be flagged to inform customers.
  • The ban follows fallout from the inclusion of a game that was developed partly using AI tools in the Playdate Season 2 premium game bundle

Portland-based game development company and creator of the Playdate console, Panic Inc., has announced it will no longer allow games that have used generative artificial intelligence (AI) tools in their development to be published on its storefront, Console. 

“As of April 2026, Catalog will no longer accept titles that use ‘Generative AI’ for art, audio, music, text, or dialog,” Panic explained in its recently published AI Disclosure.

The ban applies to games that have used AI in the creation of art, music or writing. Games that have used AI tools for coding will still be allowed, but customers of the storefront will be informed of the extent to which AI was used.

“For the time being, we will allow Catalog titles that have used AI assistance in the coding process, but we will flag any title as such and specify the extent that it was used (for example, ‘Lua debugging’) so the customer can decide whether to support it or not.”

Panic explained precisely what they consider to constitute generative AI for the purposes of their ban, saying it includes (but isn’t necessarily limited to) large language models (LLMs) like ChatGPT, Claude or Gemini, AI-based image generation models like Stable Diffusion and Midjourney, and AI-based audio creation models like MuseNet and Udio. 

The use of custom-written functions that govern in-game behaviour (such as those to control ‘enemy AI’) will not be affected by the ban.

In a statement to the Game Developer website, Panic’s co-founder Cabel Sasser said, “We felt this was an important step to take for both game quality and our community.”

Previously-approved titles developed using AI will continue to be listed in the storefront, but will be flagged to inform customers. 

Related: Ledger Targets AI Agent Risks With Hardware-Based Security and Human Controls

Ban Follows Inclusion of AI-developed Game In Premium Bundle

Panic’s decision to ban games made using AI tools from its storefront comes after customers noted an AI-developed game known as Wheelsprung was included in the Playdate Season 2 premium bundle pack.

In a post on the social media platform Bluesky, the official Playdate account confirmed that no game developed with AI assistance (including the use of AI coding tools) will be included in the next premium bundle drop, Playdate Season 3.

“We can happily confirm that it was a requirement for all season three devs that no ai can be used in season three games. This includes art, music, writing, and, yes, code.”

Related: Japanese Giants Unite to Build the Brain Behind the World’s Machines

Panic said the inclusion of a game which was developed partly using AI tools in the Season 2 pack was an oversight on its part, telling the website Exp that it hadn’t anticipated that a developer included in one of its premium releases would use LLMs.

“In hindsight, that was naive—we take full responsibility,” Panic co-founder Cabel Sasser said at the time.

Credit: Source link

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