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Google’s Project Genie AI Game Design Tool Melts Down Gaming Stocks for Roblox, Nintendo, and CD Projekt Red

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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.

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