Role-playing hit “Baldur’s Gate 3”, based in the world of Dungeons and Dragons, was named video game of the year at an awards ceremony in Los Angeles late on Thursday.

Set in a fantasy realm of wizards, elves, barbarians and other characters, it is the latest instalment in the titular franchise, created by Larian Studios.

“The team at Larian spent their hearts and souls for six years on this game, sometimes under very difficult circumstances,” studio founder and chief Swen Vincke said while accepting the award.

“This was our Covid game; along the way we lost quite a few people,” he said.

Vincke was dressed in armor, in keeping with a character from the game which has won millions of fans since its release in early August.

Other contenders for the title at the 2023 Game Awards included survival horror game “Alan Wake 2,” which took top prizes for direction and narrative.

The game, developed by Remedy Entertainment and published by Epic Games, centres on a best-selling author trying to escape an alternate dimension.

“When more than 100 people believe in the same vision and build something out of it we can make miracles, we can make art, and we can be more than the sum of our parts,” game director Sam Lake said while accepting an award.

“Our world today could use a bit more of that,” he said.

The ceremony featured appearances from celebrities including Matthew McConaughey and Timothee Chalamet, as well as an array of trailers for new titles in the works.

Japanese video game icon Hideo Kojima provided a glimpse at an “OD” game he is making in collaboration with actor and filmmaker Jordan Peele.

Kojima said on stage that he is working with Microsoft’s Xbox game studios and its cloud computing team to make “OD” something uniquely immersive.

“It is a game, don’t get me wrong, but at the same time a movie; a new form of media,” Kojima said through an interpreter.

OD explores the concept of testing one’s fear threshold while blurring the boundaries of gaming and film, according to Kojima Productions.

Peele, who directed the movies “Nope”, “Us” and “Get Out”, described what Kojima was creating as completely immersive and utterly terrifying.

“I grew up watching movies and I’m a game creator, and Jordan grew up playing games and he is a movie director now,” Kojima said.

“This collaboration will be really awesome,” he said.