Panic, the company behind the Playdate console, announced it will no longer accept games using generative AI for art, audio, music, text, or dialog. The company published an AI disclosure stating these guidelines take effect immediately. AI assistance for coding remains allowed but will be disclosed to customers. This follows the announcement of Playdate season three arriving later this year.

Previously-approved AI games will remain on the catalog with specific disclosures about AI usage. The company explicitly bans large language models like ChatGPT, Google Gemini, AI image generators like Stable Diffusion, and audio generators like MuseNet and Suno. These guidelines come after one game in season two used generative AI for writing and coding.

Panic maintains its policies are "under constant discussion and subject to change at any time." While sideloading games onto Playdate remains possible, creators using generative AI will face challenges with distribution and discovery. The company's stance reflects growing tension between AI technology and creative industries.