Level-5 Addresses Generative AI Controversy, Apologizes for Promotional Video

Level-5 has issued an apology regarding the use of generative AI and production mistakes in materials shown during its LEVEL5 VISION 2026 II broadcast. The company has uploaded corrected versions of affected promotional videos around the start of Tokyo Game Show 2026.

Level-5 acknowledged that AI was used improperly in some video production while also addressing several details that viewers had attributed to AI but were instead caused by human error or deliberate artistic simplification. They apologized for creating uncertainty around its production process.

The statement specifically addresses promotional artwork for Yo-kai Watch 2: Haunted Domain. Level-5 says the unusual power lines were not AI-generated. Its designers drew them by hand and intentionally simplified them for the background. The company has since adjusted the artwork to make the power lines appear more natural.

Level-5 similarly attributes details involving a vending machine and rain gutter to human errors related to omitted visual details. The team also addressed the missing brake lever on a bicycle. The lever was absent from the corresponding bicycle in the original Yo-kai Watch 2, although they believe the detail should have been included given the new project’s increased visual detail.

The company also responded to discussion surrounding differences in Keita’s character model between the Nintendo Direct footage and LEVEL5 VISION 2026 II. Level-5 says AI was not used to alter the character. The model was revised after the company determined its earlier version did not meet its intended quality, but the Nintendo Direct deadline arrived before it could incorporate those revisions. As a result, the later Level-5 presentation featured the updated model.

Level-5 separately stated that AI was not used in Professor Layton and the New World of Steam. It also says AI is not directly used in the content of its games, distinguishing that from its acknowledged use in producing some promotional footage.

Going forward, Level-5 says it will restrict AI use to efficiency-related production tasks and avoid directly using it in videos delivered to the public. The company also plans to increase its checks on publicly released materials.

New gameplay videos have been prepared for titles including the crime suspense RPG Decapolice and the action RPG remake Snack World: Reloaded, both of which will have playable demos at the event. Each game is scheduled for PlayStation 5, Nintendo Switch 2, and PC via Steam in 2027.

Level-5 has also prepared a TGS 2026 version of the Holy Horror Mansion promotional video.