Glossary

The AI-native games glossary

34 terms from publishing deals, Steam launches and LLM character engineering, each defined in a sentence or two and linked to the page that goes deeper.

A

Adaptive director

A system that observes how a player or party plays and adjusts pacing, difficulty or content in response. AI-native directors reason about play style, not just numbers.

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AI-native game

A game whose core experience depends on a model running at play time. Remove the model and it stops being the same game. Contrast with AI-assisted development.

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ARPDAU

Average revenue per daily active user. Multiplied by expected active days per install, it gives a simple LTV.

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Authored fallback

A hand-written line or behaviour used when generated output fails a check, the model is slow or the player is offline. Keeps failures in-world.

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B

Boxleiter method

Estimating a Steam game's unit sales by multiplying its review count by a factor, commonly 30–80.

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C

Cache hit rate

The share of model calls whose prompt prefix is served from cache. Caching saves money when it exceeds (w−1)/(w−r) for write multiplier w and read multiplier r.

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Context window

The maximum number of tokens a model reads in one call. Everything a character knows for this turn must fit in it.

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Cost per player-hour

Inference spend for one hour of play: calls per hour × tokens per call × price per token. The core planning number for AI-native games.

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D

D1 / D7 / D30 retention

The share of an install cohort active 1, 7 and 30 days after install. Often modelled as a power law r(n) = a·nᵇ.

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Distillation

Training a smaller model on a larger model's outputs so it imitates it in a narrow domain, such as one character's voice, at lower cost.

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E

Erlang C

A queueing formula giving the probability a request must wait when c servers handle Poisson arrivals. Used to size inference capacity for a latency target.

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Eval suite

A fixed set of scenarios whose generated outputs are scored against rubrics (in character, on lore, within rating) on every prompt or model change.

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G

Generative world

Levels, quests or regions created at runtime inside hand-designed constraints that guarantee fairness and solvability.

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Guardrails

The layered checks that keep generated content within rules: input screening, character constraints, output classification and fallbacks.

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I

Inference

Running a trained model to produce output. In games, the per-player runtime cost of AI characters and systems.

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IP reversion

A contract clause returning publishing rights to the studio if the publisher stops supporting the game or sales fall below a floor.

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L

Latency budget

The allocation of acceptable delay across network, queueing, prefill, first token and voice so total response time stays conversational.

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Lifetime multiplier

Lifetime units sold divided by first-week units. Varies strongly by genre; the key assumption in wishlist forecasts.

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Live-generated content

Content created by a model while the game runs, as opposed to pre-generated content made during development. Stores ask for guardrail descriptions for it.

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LTV

Lifetime value: expected revenue per player or install. For AI games, compare it with lifetime inference cost.

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M

Model routing

Sending each request to a small or large model based on a cheap classifier. Pays off when the routed share × the price gap exceeds the classifier's cost.

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N

Net receipts

Platform payouts after store fees, refunds and taxes. The base most publishing splits are calculated on.

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P

Prefill

The phase where a model processes the input prompt before generating. Long prompts lengthen it; caching shortens it.

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Prompt caching

Reusing a provider's processed form of an unchanged prompt prefix. Cheaper and faster on hits, slightly more expensive on writes.

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R

Rating envelope

A written spec of the most intense content a game can generate per rating category, enforced in code. The basis for rating games with live content.

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Recoup

The publisher earning back its recoupable investment from the game's revenue before the long-term split applies.

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Retrieval score

A ranking of stored memories for inclusion in a prompt, commonly a weighted sum of recency, importance and relevance.

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Revenue-based financing

An advance repaid as a fixed multiple from a share of future revenue. Annualised cost ≈ M^(1/t) − 1.

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S

Square-root staffing

The queueing result that capacity for a fixed service level grows as a + β√a, so larger pools need proportionally less headroom.

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Summarise-and-flush

Compressing the last k exchanges into a summary and dropping them from context. Optimal k* = √(2(s+q+ρs)/m).

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T

Tail multiplier

See lifetime multiplier.

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Tone guard

An output check that keeps a character's lines in voice and within the rating envelope before the player sees them.

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V

Vertical slice

A short, near-final-quality section of a game that demonstrates the full experience. The usual stage for strong publishing terms.

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W

Wishlist conversion

First-week sales divided by launch wishlists on Steam. GameDiscoverCo reported a median near 0.105 for late-2024 releases with 5k+ wishlists.

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