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Videogame Stocks Slide On Google's AI Model That Turns Prompts Into Playable Worlds (reuters.com) 35

An anonymous reader quotes a report from Reuters: Shares of videogame companies fell sharply in afternoon trading on Friday after Alphabet's Google rolled out its artificial intelligence model capable of creating interactive digital worlds with simple prompts. Shares of "Grand Theft Auto" maker Take-Two Interactive fell 10%, online gaming platform Roblox was down over 12%, while videogame engine maker Unity Software dropped 21%.

The AI model, dubbed "Project Genie," allows users to simulate a real-world environment through prompts with text or uploaded images, potentially disrupting how video games have been made for over a decade and forcing developers to adapt to the fast-moving technology. "Unlike explorable experiences in static 3D snapshots, Genie 3 generates the path ahead in real time as you move and interact with the world. It simulates physics and interactions for dynamic worlds," Google said in a blog post on Thursday.

Traditionally, most videogames are built inside a game engine such as Epic Games' "Unreal Engine" or the "Unity Engine", which handles complex processes like in-game gravity, lighting, sound, and object or character physics. "We'll see a real transformation in development and output once AI-based design starts creating experiences that are uniquely its own, rather than just accelerating traditional workflows," said Joost van Dreunen, games professor at NYU's Stern School of Business. Project Genie also has the potential to shorten lengthy development cycles and reduce costs, as some premium titles take around five to seven years and hundreds of millions of dollars to create.

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Videogame Stocks Slide On Google's AI Model That Turns Prompts Into Playable Worlds

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  • ... I'd be happy with generated movies or series. No playability required.

    So many good books I'd love to see dramatized!

    • Really? Given how many movies based on books end up being so much less rich than the book, my tendency is to think some prompt-based thing will make good books really into a really boring videos. The mind's eye is a pretty skilled cinematographer.

      • by Teckla ( 630646 )

        The mind's eye is a pretty skilled cinematographer.

        I have aphantasia, you insensitive clod!

        No, really. I do. :(

    • Huh. Weird downmod. Stalker? Movie/miniseries hater, lol?
  • by locater16 ( 2326718 ) on Friday January 30, 2026 @06:20PM (#65959962)
    The AI morons flee, buy the dip!
    • Has anyone seen a version of "project genie" where the character goes in a wide circle and ends up where he was to begin with? I very much doubt they can do that, and without that its never going to be a playable game. Maybe a movie or a commercial.

      Now, it does appear that it can mimic enviroments from a camera for a short period of time, so if you were to build a basic 3d world with unity and pipe that into project genie you might have a game where it simulates pretty grass and clouds and trees, or a run d

  • AI is a lie and nothing more than a string matching algorithm. At least thatâ(TM)s what so many of you say here
    • AI is a lie...so many of you say

      So far it has proven itself to be nothing else. This Google lie will reveal itself at some point.

  • AI slop now making your games even better! Joy!

    • I find most of the time that AI will spit out something close to what you want 1 out of 10 times. Yes, the other 9 times is no where near what you want. What's wrong with having a game where at least 90% of it is pure crap and most of the game mechanics don't work properly? It however can generate a lot of content. You could have a great crafting system. Okay, some swords will just look like boomerangs, and the medieval town will mostly look like a modern city, but hey, if you don't like the slop, there is
    • A lot of games are already slop. Those will die off as AI slop replaces them.

      Open world of 3D models with basic physics? They could take existing stuff and just have the AI tweak the engines involved. Making 3D maps of loosely related objects with loosely attached object properties to simulate doesn't sound like it's replacing Zelda to me. But the same old 1st person shooter with a generated plot, voice over, and things to shoot... they could do all the bargain bin clearance games... not many years before

  • Let me try that.

  • Plaintiffs: The gaming companies
    Defendant: Google

    Has a hornet's next been kicked?

    • If you want people to answer your question, you should consider explaining wtf you're talking about. ...cue WHAT lawsuits about WHAT exactly? Jesus Christ
  • They see google doing something that sounds vaguely game related and sell positions.

    I looked at this in more detail and honestly this looks like something that would be great for making a proof of concept to sell the idea of a game pretty quickly, but it's far from being able to make a full game.

    Example: "Make a proof of concept for an open-world single player game with the art style of League of Legends" then make a bunch of iterations on that with "art style of film noir" or "art style of high defin
  • Retention aside, a game is much, much more than the map it takes place in. Without it generating actual 3D environments for later use, the technology is a novelty and not much else.
  • then forget ? It's the engagement with the world and stories that make a great game .
  • Replace games (Score:4, Insightful)

    by Hentes ( 2461350 ) on Friday January 30, 2026 @07:46PM (#65960126)

    I feel like playing with AI is going to be something that replaces games, not something that generates them.

  • So the morons buying and selling stocks obviously haven't been paying attention to the fact that any whiff of AI "art" is basically a death knell for a game. I mean, Larian Studios got shit on all over these interwebs after the fact because they mentioned they used AI to bring some concepts to life during the initial planning stages of BG3. Even when they made it very clear that none of that was used in the actual game. People who enjoy art want nothing to do with AI generated nonsense.
    • The outrage isn't sustainable. I suspect the only games *not* using AI generated assets within the next 3 years will be boutique games where the main selling point is that everything is human-made. It'll be like hand-crafted furniture is today, expensive and decidedly not mainstream.

      • I suspect game makers will indeed do that, and will see their profits flat-line as gamers avoid their slop because it's slop, regardless of what the reason is.

    • by jythie ( 914043 )
      On the other hand, think of how much of the revenue in the game industry today comes from mobile apps and other advertiser friendly products. This type of offering probably can not help the type of games people actually buy, but it could reduce costs and increase output of free games where the players are the product, which investors could see dollar signs in.
  • let's play global thermonuclear war

  • Disclaimer: I'm a game developer.

    This looks like interesting stuff. I recall playing around with Microsoft's similar, but more limited, demo that recreated Quake. I imagine that hands-on this probably behaves basically the same way.

    Without knowing how they actually implemented this, I'm curious at how honest they are when they say it "simulates physics and interactions". The math behind rigid body, IK, collisions, cloth deformations, etc., etc. doesn't really seem to be in the wheelhouse of a generative lea
    • Yeah, exactly - it's not doing any actual physics calculations, it's only estimating them. I'm personally skeptical if this will ever be good with actual physics. Part of the fun of messing around in physics video games is to see how things respond, crumble / fall / react. For an AI-generated video? You are getting a best guess aproximation.

      Oh, and I totally doubt it would do any physics at all when you're not looking at it. While I understand it 'remembers' previous views and frames, I totally doubt i
    • by jythie ( 914043 )
      I am guessing it is just a messy game engine with a natural language interface instead of an ide where you configure things by hand. Meaning to do anything interesting, you'll probably have to break out of the rubber room and work with the actual API to whatever half baked monstrocity they have under the hood.
  • So.. they have come up with a game engine where its entire appeal is its informal, undocumented command language that mostly j sut does whatever 'most' people have done before? I suspect 10 year olds will love it for about a week before they realize they don't have the creative control that they want, and any other creative type will find little use for it. Now, if you are some kind of hustle culture bro who wants to produce tons of slop to throw on some app store or ad ridden platform, I guess it might b
  • Because that is as stupidly irrational as it gets. All that stock-market speculation does is damage.

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