- Google launched its new AI tool, Project Genie, for AI Ultra subscribers
- It has since caused the stock prices of several video game companies to plummet
- Investors placing shares in Project Genie is a worrying sign of potential AI game development
AI continues to be a constant threat to gaming, with its major impact on gaming PC hardware via high RAM prices and concerns about replacing game developers, and a recent update shows that the latter may eventually become a possibility.
According to Google, several video game developers and publishers have seen major stock price drops 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 several users creating worlds using images from popular games such as Nintendo’s The legend of Zelda: Tears of the KingdomRockstar Games’ GTA 5and Kingdom Heartssome of which look close to the genuine products in some areas.
There is no map preloaded in the memory. As your agent explores, Genie predicts and renders the way forward instantly. Endless exploration. pic.twitter.com/5lZzhFS6vo30 January 2026
Analysts have noted that the reason for share price declines for companies like CD Projekt Red, Take Two Interactive (Rockstar Games’ parent company) and Nintendo is that investors have clearly put a lot of stock into Project Genie, probably with the idea that this would topple genuine creations from major game studios.
However, Project Genie is still in its experimental phase, meaning these interactive worlds are barely playable, and it comes at a hefty price for users at $249.99 per month via Google’s AI Ultra plan.
It’s not even close to being advanced enough to surpass authentic games, and the consensus around AI integration in games (such as the backlash to AI in Call of Duty Black Ops 7) states that players will not be responsible for AI-generated gameplay. However, there is still a chance that this will become a reality in the future.
Opinion: AI is a deadly threat to gaming and this is a warning sign
While AI certainly has its advantages, viz Nvidia’s DLSS upscaling technology, AI is proving to be detrimental to gaming 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 competent AI tool for gaming is launched – and it’s scary.
Game development by real developers has provided some of the best in-game 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 be staring down the barrel of a loss in creativity, games lacking identity, and most importantly, more layoffs.
It’s a promising sign to see players strongly protesting such moves, as I strongly believe that AI should not be used for games in this way. Let’s just hope it never gets there.
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