1666: Amsterdam’s AI Art Controversy: What Happened, the Studio’s Apology, and Why Players Aren’t Convinced

The Studio’s Response: “An Oversight” and a Pledge

Panache Digital Games responded swiftly through a Reddit statement. The studio confirmed it employs a dedicated art team of more than a dozen experienced artists and said that after investigating the community’s concerns, it found that “some early versions of AI-generated assets slipped into the prologue version — including some in-game portraits and some external marketing materials” .

The statement included a direct apology and a promise:

“We take responsibility for this oversight and apologize for any upset it has caused. Please rest assured that the Early Access version and the full game will not include any AI-generated assets.”

The studio committed to reviewing the flagged assets and replacing them with hand-crafted versions in an upcoming update . As of mid-June 2026, that patch had not yet been released, and the studio had not addressed whether the AI use was in fact deliberate rather than accidental.

A Defining Week for AI in Games

Panache’s controversy was not an isolated incident. The same week produced two other major AI-related flare-ups, turning Summer Game Fest 2026 into an inflection point for generative AI in the games industry:

• Crazy Taxi: World Tour (Sega). Revealed during the Xbox Games Showcase on June 7, the game was hit with immediate backlash when a generative AI disclosure was discovered on its Steam page . Sega later confirmed that AI was used “to support our teams during the development of background assets” . Series creator Kenji Kanno defended the practice, saying AI was used “as a reference” tool by artists who then created the final assets by hand . Fan sentiment turned sharply negative .

• Kingdom Hearts Switch 2 Collection (Square Enix). During the June 9 Nintendo Direct, credible suspicions emerged that generative AI was used in the lead key art for the Kingdom Hearts Switch 2 collection. Observers pointed to inconsistent hair layering and bizarre background details as hallmarks of AI generation . Square Enix did not issue a statement at the time.

The clustering of three separate AI controversies across Summer Game Fest, the Xbox Games Showcase, and Nintendo Direct underscored how sensitive the 2026 gaming audience has become to generative AI in art .

Lingering Skepticism: “Only Sorry They Got Caught?”

A significant portion of the player community remains unconvinced by Panache’s apology. The core argument is one of credibility: a studio with 70 developers and a dedicated team of experienced artists could not have “accidentally” included AI-generated art in both in-game assets and its official marketing materials without knowing .

Critics point to several factors that fuel this doubt. The “oversight” narrative strains belief because the assets appeared in the shipped demo and on public-facing store pages—not internal prototypes. The rapid apology and pledge to replace the assets closely matches the language used in earlier scandals, such as Crimson Desert in March 2026, when developer Pearl Abyss similarly described AI assets as “early development experimentation” that slipped through unintentionally . Many players believe Panache knowingly used AI to save time and cost on the prologue, and only backtracked when the backlash threatened the game’s commercial prospects .

The sentiment was captured bluntly by one Chinese games outlet: “Panache Digital Games didn’t play dead — they issued a statement fast. But the community’s reading is: we messed up, we won’t do it in future versions. The subtext many hear is ‘we got caught, so we’re stopping.’”

As of June 10, 2026, the studio had not addressed the specific accusation that the AI use was deliberate rather than accidental. That silence continues to leave room for doubt, and the promised replacement update will be watched closely by a community that has made its stance clear: AI-generated assets in released games are no longer something players are willing to overlook.