Gaming market melts down after Google reveals new AI game design tool — Project Genie crashes stocks for Roblox, Nintendo, CD Projekt Red, and more
Project Genie can AI-generate "games" capped at 720p and 24 FPS.
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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.
Unity's share price fell the most at 20%, since it's a popular game engine. Generally speaking, that's how most games operate: they use a software framework, such as Unity or Unreal Engine, which provides basic functionality like physics, rendering, input, and sound. Studios then build their vision on top of these, and some developers even have their own custom in-house solutions, such as Rockstar's RAGE or Guerrilla's Decima.
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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ggeeoorrggee A clear reminder that the stock market trends are driven by people who know nothing about the technology’s capability, viability, or applicability.Reply
Invert this reaction and you have the over-valuation of every AI company in the field. -
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.Reply
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. -
thisisaname Reply
Aye driven by people and and amplified by AI?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. -
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 -
bit_user I'd never want to play a game made purely by AI. The time I spend gaming is quite limited, and I therefore prioritize the best designed experiences by skilled and experienced creators.Reply
I don't mind if they happen to use AI-enabled tools to accelerate the creative process, so long as the entire game has been carefully designed, tested, and streamlined by a skilled team.
So, in my opinion, the biggest risk from a tool like this is just that it clogs game marketplaces with too much slop and potentially makes it harder to fund skilled development teams, leading to drops in the quality & quantity of their output. That would be a shame. -
beyondlogic ai is a bloated beast that will eventually fall like the crypto market someone will fall and the dominos will fall with it.Reply -
JohnyFin Steam already is covered by Indy crap games, what will be on next 5 years....guess! 🤣🤣🤣Reply -
bill001g What do you call a game engine. The world didn't end when those tools were developed. Code generation of one form or another has existed for years they just didn't call it AI.Reply
Even I wrote something you could technically call a game just playing around with these tools.
The main thing the AI can not do it invent something that is a completely new idea.
Then again most games are already reskinned slop just written by humans. -
TerryLaze Reply
A clear reminder to people like you: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.
They don't need to know anything about the technology, all they need to do is to know how other shareholders are going to react to news like that and that's psychology and the same for any market.
So you don't play any games at all....Bit_user said:so long as the entire game has been carefully designed, tested, and streamlined by a skilled team.
Yes yes, A.I. Is a bubble it will go away just like the other big bubble we had, what was it called...internet...something like that?!?Beyondlogic said:ai is a bloated beast that will eventually fall like the crypto market someone will fall and the dominos will fall with it.