Since Monolith Productions was folded into WB Games last month, one of the most widely recognized losses was the studio's proprietary Nemesis System - a dynamic AI framework that enabled nuanced, evolving enemy interactions in Shadow of Mordor. While praised for its impact on single-player design, its creation was driven just as much by business needs as creative ambition.

Credit: WB Games
As discussed in a retrospective from former WB vice president Laura Fryer, singleplayer games like Arkham Asylum would start with a strong surge of buyers, before running into a sales drop-off as second-hand and used game markets started to emerge.
"It all started when Rocksteady shipped Arkham Asylum in 2009," said Fryer. "It was selling great. Then suddenly sales dropped off."
The decline in new purchases poses obvious challenges for publishers, who would rather incentivize players to hold onto their games for longer, and resell them less frequently. Which prompted the studio to explore solutions.
"How do we create a singleplayer game that is so compelling that people keep the disc in their library forever?"
Fryer describes that the main solutions - large-scale open worlds like GTA, and multiplayer titles like Call of Duty - were out of the question for the Monolith team. They had to find a way to incentivize replayability within the confines of a singleplayer title. And to do so efficiently, without requiring extensive labour or a shift in creative direction.
"We knew Monolith's game engine wasn't yet capable of having a fully open world like a GTA, and this team wasn't interested in going the multiplayer route, but we still had to solve for the constraint."
Which is how the Nemesis System was born. As you'll find in Shadow of Mordor, the Nemesis System dynamically tracks and evolves enemy NPCs - enemies who survive encounters remember you, climb ranks, and return with different dialogue, tactics, and grudges. The system reuses in-game assets to create emergent, reactive encounters - boosting replayability without requiring extra level design or writing.
The patenting of the Nemesis System makes a little more sense with this in mind - essentially being a financial asset for the studio. WB Games filed the patent in 2015, and it was granted in 2021 - effectively protecting the tech as proprietary IP. Being able to take existing in-game assets and effectively extend the shelf life of a singleplayer title, while deepening engagement, is a notable competitive advantage for a publisher.
Nonetheless, the Nemesis System remains one of the biggest wasted innovations in gaming. It's uncertain whether we'll see it again - last utilized in 2017's Shadow of War, and reportedly planned for use in the cancelled Wonder Woman game. But for now, all we can do is hope for a return.
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