Generative AI is making it easier than ever to build playable game projects, but two recent examples show that technology does not make copyright and intellectual-property rules disappear. Both Bethesda and Activision have recently taken action against fan projects that used AI to recreate parts of their well-known games.
Bethesda shuts down AI-made Fallout project
One of the projects, called Fallout: New York, aimed to recreate the post-apocalyptic world of Fallout in New York City and make it playable directly in a web browser. The project was shared by ChrisFirst on X and quickly attracted millions of views. According to the creator, the game included features such as quests, dialogue trees, V.A.T.S. combat and a working Pip-Boy. What made the project particularly interesting was how it was created. ChrisFirst said the game was built with AI rather than traditional game-development assets, with buildings, weapons, characters and sounds generated through code. The project appeared online on September 28 and reportedly received more than 3.5 million views. However, its time in the spotlight was short-lived.
On October 1, ChrisFirst said the project was being abandoned after receiving what he described as a cease-and-desist notice from Bethesda over alleged infringement of the company's intellectual property. “Sorry to everyone who enjoyed the game!” the creator wrote, announcing that the project was over.
Activision targets AI recreation of Modern Warfare 2
A similar situation unfolded around the original Call of Duty: Modern Warfare 2. On September 30, developer Maurice Heumann said he was using generative AI agents to help decompile the PC version of the game and recreate its source code. Heumann claimed that 17 AI agents were working on the project simultaneously and that the game had become fully playable, with most of its visible bugs already fixed. He even shared footage showing the project in action, including a kill streak. That footage was later removed after Activision filed a copyright complaint. Instead of the video, viewers were shown a notice stating that the media had been disabled following a report from the copyright owner. A website reportedly hosting the related code also became inaccessible.
A bigger question for AI game development
These incidents highlight a growing challenge for the gaming industry. AI tools can dramatically speed up development and allow small teams—or even individual creators—to experiment with projects that would once have required large development teams. But being able to recreate a game quickly does not mean the creator has permission to use its characters, designs, code, story elements or other protected material. For major publishers, that creates an increasingly difficult situation. AI-generated projects can appear online, attract millions of views and disappear again before a traditional legal response can fully catch up.
Some people argue that publishers should focus their attention on the companies developing AI tools rather than individual creators. Others believe copyright holders have every right to protect their games when someone uses their intellectual property without permission. For now, the message from Bethesda and Activision appears straightforward: AI may make game creation easier, but it does not make established intellectual-property rights disappear.
