Video game company share prices dropped significantly following the unveiling of Google’s Project Genie, a prototype AI tool capable of generating playable worlds from text prompts. Unity was hit hardest, with shares falling 35%.
Investors fear the technology could disrupt traditional game development. However, Unity CEO Matthew Bromberg dismissed these concerns, stating that current “world models” are too probabilistic for production-grade games. He emphasized that Unity plans to operationalize these tools, using them to generate initial assets that are then refined within Unity’s deterministic engine.