News Level-5 18 Sept 2026, 09:303 min read

Level-5 apologizes after AI controversy around VISION 2026 II: Dreams on 17 September

Level-5 apologizes after AI controversy around VISION 2026 II: Dreams on 17 September

In brief

  • Level-5 apologized on 17 September for mistrust over its production process after backlash over the VISION 2026 II: Dreams showcase.
  • The studio says inexperience with AI tools and simple human mistakes caused the issues, but that AI was not directly used in the games themselves.
  • The controversy centered on trailers and showcase material for games including Yo-kai Watch 2: Haunted Domain and Professor Layton, which viewers said showed AI-like anomalies.

What happened

Level-5 published a statement on 17 September apologizing for the mistrust that had arisen around its production process. In the text shared by Level-5, the company says that “inexperienced use of AI” and “simple human errors” were behind the problems. At the same time, the studio stressed that AI was not directly used in the games’ content itself.

The backlash began after the VISION 2026 II: Dreams presentation, which Level-5 aired on 10 September. In that showcase, the studio featured Yo-kai Watch 2: Haunted Domain, Decapolice, and Professor Layton and the New World of Steam. Soon after, social media users pointed to visual inconsistencies in trailers and artwork, and speculated about generative AI or AI-like upscaling in backgrounds and other presentation elements.

IGN reported that fans compared the Nintendo Direct trailer from 9 September for Yo-kai Watch 2 with Level-5’s 10 September presentation. According to that reporting, the Professor Layton and the Curious Village remake trailer was also cited as a possible example of AI-upscaled backgrounds. In its statement, Level-5 says the core parts of the games, such as story, character design, and setting, were created by humans.

Timeline

  • 2026-09-09: Nintendo Direct trailer for Yo-kai Watch 2 is released and later compared with Level-5 material.

  • 2026-09-10: Level-5 presents VISION 2026 II: Dreams, featuring Yo-kai Watch 2: Haunted Domain, Decapolice, and Professor Layton and the New World of Steam.

  • 2026-09-10: Social media accusations emerge that Level-5 used generative AI or AI-like editing in trailers and backgrounds.

  • 2026-09-17: Level-5 publishes a statement apologizing for the mistrust and denying AI use in the games themselves.

Background

So the discussion is not about a confirmed use of AI in the game content itself, but about how Level-5 handled its presentation and trailer production. The available sources do not establish whether generative AI was actually used in trailer assets; what is clear is that the studio acknowledged its production approach as the source of lost trust.

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Sources

  • Level-5 YouTube channel, statement of 17 September 2026
  • IGN: Professor Layton Developer Level-5 Scrambles to Reupload Trailers as AI Backlash Intensifies
  • Cited social media posts in the source selection around Yo-kai Watch and Professor Layton

Sources

Tweet van @Honoch0708This backlash prompted CEO Hino to make a statement on X , admitting that the developer had experimented with using AI processing techniques for the VISION 2026 II showcase out of a “desire to make the presentation flashy." After apologizing for the offense that this caused, Hino insisted that key elements of Level-5's games (such as story, character designs and settings) were created by people and that AI tools were used to speed up the process of digitizing artists’ creations. “Please be reass

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