Google's Project Genie promises AI-driven game worlds, but investors remain cautious.

Google’s Project Genie, a generative AI tool for creating interactive game worlds, has sparked optimism about faster content creation but failed to calm investors, with gaming stocks like Take-Two, Roblox, and Unity slipping after Genie’s late‑January debut. Analysts say Genie currently produces short, simple, 1‑minute experiences and isn’t a replacement for traditional engines, amid concerns about memory costs and IP/privacy issues. Developers are unveiling their own AI tools to stay competitive, but the industry remains wary of a disruptive AI shift and the possibility of increased IP risk and market volatility.