The impact was immediate: "Project Genie” sent ripples through large swaths of the industry. Take-Two Interactive and CD Projekt fell 8%, Roblox 13%, and Unity Software - which provides a development platform - slumped 24%.
The new tool can generate a full environment and adapt it in real time to the user's actions. A video demonstration was published to showcase these capabilities.
For now, access remains limited to the US and reserved for Google AI Ultra subscribers. It is still only a prototype, with stated constraints: one-minute sessions, high latency, and image quality capped at 720p.
"Unlike experiences that are explorable in static 3D snapshots, Genie 3 generates the path to follow in real time as you move and interact with the world. It simulates physics and interactions for dynamic universes” Google explained in its presentation.
Fei-Fei Li's start-up World Labs, a leading AI name in the US, is also on the case after launching "Marble” last month.
A transformation of the sector appears inevitable, with a drastic reduction in development costs and timelines. The market very quickly priced in a scenario in which the traditional value chain is called into question. Roblox is built on a user-generated creation model, while Take-Two represents a more traditional approach to development.
With "Project Genie”, barriers to entry are collapsing, and business models are being upended. For now, Roblox retains an edge thanks to the strength of its community, and Take-Two Interactive thanks to the narrative power of franchises such as Red Dead Redemption and Grand Theft Auto. But one thing is certain: the video game industry is not done swinging between threats and opportunities.
