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Good point, not having to plan for the long term probably has an outsized effect on a given level of difficulty/effort required.

Maybe it’d be interesting to see what could be achieved responsibly by motivated people with models in a world without “feature pressure”/competitive stress (which’d include e.g. no security race and infinite attackers and exploits to keep up with)?

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That is already happening with singleplayer games, since games doesn't have to care about vulnerabilities or feature pressure or future compatibility.
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To a limited degree, yes, but there’s still competition in that you need to have something compelling to be sold. But that’s probably way less than in your typical B2B software offering situation.
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As long as the single player games stay away from the cringy AI generated pictures, it’s great I think.
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