- Google launched its new AI tool, Project Genie, for AI Ultra plan subscribers
- This has since caused the stock prices of several video game companies to plummet.
- Investors investing in Project Genie is a worrying sign for potential AI game development
AI continues to be a constant threat to gaming, with its heavy impact on gaming PC hardware via high RAM prices and concerns about replacing game developers, and a recent update shows that the latter could eventually become a possibility.
According to Google, several video game developers and publishers saw their stock prices drop following the release of Project Genie. This is a new AI tool from Google that allows users to generate playable interactive worlds based on prompts or images.
As you might have guessed, this has led to several users creating worlds using images from popular games like Nintendo’s. The Legend of Zelda: Tears of the RealmRockstar Games GTA 5And Hearts of the Kingdomsome of which appear close to authentic products in certain areas.
There is no preloaded map in memory. As your agent explores, Genie instantly predicts and renders the path to follow. Endless exploration. pic.twitter.com/5lZzhFS6voJanuary 30, 2026
Analysts have noted that the reason for the decline in stock prices of companies like CD Projekt Red, Take Two Interactive (the parent company of Rockstar Games), and Nintendo is that investors have clearly invested a lot of stock in Project Genie, probably with the idea that it would topple the true creations of major game studios.
However, Project Genie is still in its experimental phase, meaning these interactive worlds are barely playable, and that’s costing users a lot, at $249.99 per month via Google’s AI Ultra plan.
It’s nowhere near advanced enough to surpass genuine games, and the consensus surrounding the integration of AI into games (like the backlash to AI in Call of Duty Black Ops 7) indicates that players will not accept AI-generated games. However, it is still possible that this could become a reality in the future.
Opinion: AI is a deadly threat to gaming, and it’s a warning sign
Although AI certainly has its advantages, namely Nvidia’s DLSS upscaling technology, AI proves detrimental to the game very quickly.
PC hardware makers are turning their attention to AI companies, which is part of the reason RAM prices are so high, and now investors have just given us our first glimpse of what will happen if a gaming-competent AI tool is released – and it’s scary.
Game development by real developers has produced some of the best gaming content the entertainment industry has ever seen, and if an AI tool like Project Genie ever becomes advanced enough to potentially challenge authentic games, we could face a loss of creativity, gaming lacking identity, and, most importantly, more layoffs.
It’s a promising sign to see that players are vehemently protesting such measures, as I strongly believe that AI should not be used in this way for games. Let’s just hope we never get to that point.
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