I think integrating AI into games is the next step. It might be a few years down the road before we see it done right though. Computer hardware is catching up but for now this project is ambitious.
I like the sound of it, but wont touch it until I can connect to locally run AI. Kobold is pretty easy and models can smaller. I don't think it's asking too much of a local set up and working "
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" which your game connects to for all chat related needs. You link to a basic set up and suggest a model to use (many are wild and totally uncensored!). The challenge I see is how to keep your game on the tracks, so to speak. I assume refreshing scenes/conversations regularly to keep context length workable, and maybe keeping some "tokens" for use in later conversations. But that's where the actual game Dev challenge is, I guess you would use character cards which would be updated with special progression tokens.
That sounds really fun to me! Enter a conversation between characters and you challenge the player to reach a cretin outcome. (most all AI bots can be pressured one way or another) so game progression could 'assume' a conversation ending.
I've had more fun with stable diffusion and kobold (all locally ran) than I can say, but it can be demanding on the hardware. If someone can run modern games on decent settings a model with 8k context isn't asking too much.