Video game companies see stocks dip following Google AI reveal

Last week, Google rolled out an experimental AI program called Project Genie, which could generate new playable game worlds through text prompts. While most of the core gaming crowd wasn't impressed by this, it seems investors were, as many pulled money out of several gaming companies. 

With Project Genie, users can generate new explorable worlds and create a playable character, with options to specify movement properties, or camera placement – such as first-person or third-person. Shortly after the unveiling, VGC notes that a number of game publishers, like Nintendo, CD Projekt, Take-Two and more saw drops in stock value.

The move seems to indicate that a number of investors view Google's new tech as a direct threat to current game publishers. However, Project Genie itself does have a number of limitations. As Unity CEO, Matther Bromberg puts it, the need for prompts currently “limits the level of determinism and precision required for production-grade game mechanics”. Unity itself is currently building its own agentic AI to prepare the engine for future generative tools like Google's Genie.

Most of the companies that saw dips last week have started to rebound on the stock market but none of them have reached their pre-dip levels just yet.

KitGuru Says: Did you see the Project Genie announcement last week? 

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