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Recently, popular video game stocks like GTA 6 owner Take-Two ($TTWO), game development engine Unity ($U), and sandbox game Roblox ($RBLX) saw huge sell-offs that hammered share prices in the wake of Google’s announcement of a new generative AI tool called Project Genie.
The product claims it can create worlds “generated in real time,” and people quickly put it to use to create rip-offs of Mario and Fortnite, among many others. The generative AI tool seemingly spooked some investors, prompting the stocks to get hammered. But how big of a threat to the industry mainstays is Project Genie, or generative AI systems like it?
“Wall Street has lost the plot again”
Rhys Elliott of Alinea Analytics told GameSpot that “Wall Street has lost the plot again” and that generative AI is “not coming to eat the games industry.”
Some investors may have panicked at the thought that a tool like Project Genie may disrupt the video game industry because Google said Project Genie would allow anyone to generate a game with a simple prompt. But that doesn’t tell the whole story and leaves out numerous essential pieces of context.
“It’s a technical impossibility masquerading as a breakthrough,” Elliott explained. “It’s the same kind of DiSrUpTiOn
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