Game companies see share prices plummet following the launch of Google’s very limited virtual world generator, Project Genie
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Google’s new AI tool, Project Genie 3, which creates short interactive worlds from text prompts, caused a sharp drop in gaming company stocks. Investors feared it could replace traditional game development. However, industry experts quickly pointed out that the technology is extremely limited—creations last only 60 seconds and have restricted interactivity—and is nowhere near capable of generating full video games. While AI use in game development is growing, this market reaction was seen as an overreaction based on a misunderstanding of how complex games are actually made.
