Video Game Company Stocks Fall Sharply Amid Fears Sparked By Google’s Project Genie

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Take-Two's Share Fell By Nearly 10% Today!

Story Highlight
  • Google just released Project Gemini, an AI tool that can create immersive 3D worlds with just a few prompts.
  • Investors are now scared that AI will take over video game development.
  • As such, shares of various video game companies are falling rapidly.

The concept of AI used in the development of video games is a hot topic and is often rebuked by gamers. Nevertheless, the industry still believes that Generative AI is the future of video games.

With billions of dollars being invested in this field, Google has been developing an AI model capable of creating playable, immersive 3D worlds from just a few prompts.

Project Genie launched today, and it’s already wreaking havoc, causing video game companies’ shares to drop as investors now think that the future of game development lies with Generative AI.

Why it matters: There are many aspects to developing a video game, and so far, Project Genie can provide only a baseline structure, which is helpful only for conceptual work. As such, investors who think AI can take over video game development are showing outright ignorance.

Take-Two, the parent company of Rockstar, had its share fall by a massive 10.59% today. On the other hand, Roblox‘s share also fell by 12.65%. Unity Software Inc., the company behind the Unity game engine, experienced the steepest decline, with its share value falling by a staggering 21.58%. Last but not least, CD Projekt Red’s share value also dropped by 8.91%.

Now, does Project Genie really pose a threat to the gaming industry? Not in the slightest. Project Genie only creates a structure rather than a complete game, with elements that will still be crafted by developers, and it’s something AI can’t replace completely anytime soon, to be precise. 

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In fact, Google itself advertises Project Genie as a multipurpose tool, creating new ways to learn and explore historical contexts such as Ancient Rome. In any case, projects made through AI models like Project Genie aren’t sellable products; they’re more like concepts that will certainly assist with video game development, not take over.

What are your thoughts on this matter? Do you think AI will ever take over video game development? Let us know in the comments below, or at the official Tech4Gamers Forums.

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