Gaming market melts down after Google reveals new AI game design tool — Project Genie crashes stocks for Roblox, Nintendo, CD Projekt Red, and more

Stock prices for Unity, Take-Two, CD Projekt Red, and Roblox fell sharply yesterday, following Google's Project Genie announcement
(Image credit: Future)

Yesterday, Google announced Project Genie, a new generative AI tool that can apparently create entire games from just prompts. It leverages the Genie 3 and Gemini models to generate a 60-second interactive world rather than a fully playable one. Despite this, many investors were scared out of their wits, imagining this as the future of game development, resulting in a massive stock sell-off that has sent the share prices of various video game companies plummeting.

The firms affected by this include Rockstar owner Take-Two Interactive, developer/distributors like CD Projekt Red and Nintendo, along with even Roblox — that one actually makes sense. Most of the games you find on the platform, including the infamous "Steal a Brainrot," are not too far from AI slop, so it's poetic that the product of a neural network is what hurt its stock.

Stock prices for Unity, Take-Two, CD Projekt Red, and Roblox fell sharply yesterday, following Google's Project Genie announcement

(Image credit: Future)

Project Genie evades all that and handles these building blocks itself, but remember that it doesn't actually build games, per se. When you ask it to make a clone of Super Mario 64, it will dupe it rather impressively, but all you get is basic movement with a free camera that can look around the map. There are no objectives, and the AI often forgets what it has already generated when filling in gaps.

Roads in these questionably-generated games would often have patches of grass in between, as if the model thought it was supposed to generate something else for a bit before swiftly recovering. This hallucinating behavior signifies the prototype nature of the tech, and Google has said Project Genie is an experimental tool for now, meant to help with things like previz for large games.

That ties into the issue with game development these days: how bloated some productions can get with insane budgets and lead times, yet still somehow end up delivering an underwhelming product. Tools like Project Genie could genuinely help here, saving developers time they'd otherwise spend in the early stages of the game, before level design is locked in.

But in that way, AI is the solution to an artificial problem that should've been solved without it; for all that matters, devs could still find a way to balloon productions out of control even with Project Genie and a hundred other generative AI models at the helm. Of course, instead of having that concern, investors are clearly more hopeful for an AI-assisted future, given the resulting stock market shenanigans.

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Hassam Nasir
Contributing Writer

Hassam Nasir is a die-hard hardware enthusiast with years of experience as a tech editor and writer, focusing on detailed CPU comparisons and general hardware news. When he’s not working, you’ll find him bending tubes for his ever-evolving custom water-loop gaming rig or benchmarking the latest CPUs and GPUs just for fun.

  • ggeeoorrggee
    A clear reminder that the stock market trends are driven by people who know nothing about the technology’s capability, viability, or applicability.

    Invert this reaction and you have the over-valuation of every AI company in the field.
    Reply
  • timsSOFTWARE
    If anything, I think this technology will probably be helpful to the game industry - it can be used to help visualize concepts, and get early focus test feedback on game concepts before a lot of money and effort gets spent on them. There may even be limited applications for this type of technology in neural rendering - transforming a base version of a scene using AI-driven imagination prior to final output.

    But there is no direct path to using this technology to replace game development in a more general sense any time in the near/foreseeable future. And even if in the longer-term future it scales to the human-level of dreams, dreams wouldn't make very good videogames. Dreams have inconsistent rules, and make no guarantees about the sort of experience they are going to provide.
    Reply
  • thisisaname
    ggeeoorrggee said:
    A clear reminder that the stock market trends are driven by people who know nothing about the technology’s capability, viability, or applicability.

    Invert this reaction and you have the over-valuation of every AI company in the field.
    Aye driven by people and and amplified by AI?
    Reply
  • Notton
    Yeah, from what it sounds like, this is a tool that helps lay out the concepts and ideas, rather than replace a game engine entirely.
    Reply