"We feel deeply uneasy and apologetic about this." Image credit: Source Technology Last week, Recreate Games apologised after an AI-generated video competition for its popular casual brawler Party Animals drew significant criticism from its community. Now, it's cancelled the competition entirely. Recreate announced on X yesterday that after receiving "a significant amount of negative feedback", Party Animals' AI video contest has been cancelled effective immediately. Party Animals - Official Trailer Watch on YouTube "Even though our original intention was to encourage more diverse forms of creative expression and lower the barrier to entry, allowing more players who love Party Animals to participate, we mistakenly tied 'lowering the barrier' together with 'using AI'," Recreate wrote. "In doing so, we overlooked the potential offense and harm that the ongoing debate surrounding AI-generated content could cause to our players and the creator community.…