Google launched its new AI tool, Project Genie, for AI Ultra plan subscribersIt has since caused a plummet in stock prices for multiple video game companiesInvestors placing stock in Project Genie is a concerning 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 of replacing game developers, and a recent update shows that the latter may eventually become a possibility.
According to Google, multiple video game developers and publishers have seen major stock price plummets as a result of Project Genie’s release. It’s 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 multiple users creating worlds using images of popular games like Nintendo’s The Legend of Zelda: Tears of the Kingdom, Rockstar Games’ GTA 5, and Kingdom Hearts, some of which look close to the genuine products in some areas.
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There is no map pre-loaded in memory. As your agent explores, Genie predicts and renders the path ahead instantly. Infinite exploration. pic.twitter.com/5lZzhFS6voJanuary 30, 2026
(Image credit: Nintendo)
Analysts have noted that the reason for stock price drops for companies like CD Projekt Red, Take Two Interactive (Rockstar Games’ parent company), and Nintendo is that investors have quite clearly put a lot of stock into Project Genie, likely with the idea that this would overthrow genuine creations from big game studios.
However, Project Genie is still in its experimental phase, which means these interactive worlds are barely playable, and it comes at a hefty cost for users at $249.99 per month via Google’s AI Ultra plan.
It’s not even close to being advanced enough to outdo authentic games, and the consensus surrounding AI integration in gaming (such as the backlash to AI in Call of Duty Black Ops 7) indicates that gamers won’t stand for AI-generated gaming. However, there’s still a chance this will become a reality in the future.
Opinion: AI is a deadly threat to gaming, and this is a warning sign
(Image credit: Getty Images/Surasak Suwanmake)
While AI certainly has its benefits, namely Nvidia’s DLSS upscaling technology, AI is very quickly proving to be detrimental to gaming.
PC hardware manufacturers are turning their attention to AI enterprises, which is part of why RAM prices are so high, and now, investors have just given us our first glimpse at what will happen if a competent AI tool for gaming is launched – and it’s scary.
Game development from real developers has yielded some of the best content in games that 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 be staring down the barrel of a loss in creativity, gaming lacking identity, and most importantly, more layoffs.
It’s a promising sign to see that gamers are protesting against such measures vehemently, as I strongly believe that AI should not be used for games in this manner. Let’s just hope it never gets to that point.
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