there was some discussion about how several japanese solo game developers are using gen ai background art, and i have my thoughts on it plus the state of free japanese games from someone who has covered indie/doujin games for years and have made my own stuff fairly recently:
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the resources people use like royalty-free photo sites are now littered with gen ai nonsense. asset packs you pay for might have these backgrounds.
very few spaces have any regulation. it sucks.
this is unsustainable for many other developers, so i expect to see people compromise or pay up.