

That‘s the critical one. It‘s not about budget or outsourcing or whatever. It comes down to who makes the decisions and why. In a lot of cases it‘s people with a finance background who couldn‘t care less about the medium they‘re working with and that can be a major issue. Gaming being a bigger industry than music and film combined has attracted a lot of people who only think in dollar bills and it shows. Luckily however, there are still a lot of passionate teams with leaders who have a love for games.
Meh. There really isn‘t a lot there. The short film mentioned has largely been regarded as a complete flop with no critical acclaim whatsoever. It‘s regarded so bad it’s essentially a meme. A real slop fest.
As for copyright: Using models trained on copyrighted material is more of a gray area than being explicitly allowed. They literally mention the act went active in 2019. That is before the rise of AI. So if anything they‘re just really behind the curve and not so much embracing technology.
This reminds me of the saying that Japan has been in the year 2000 for the past 40 years. Some older folks somehow still think it‘s some futuristic paradise for sci-fi nerds when that hasn‘t been the case for over 20 years.