The post Take-Two, Roblox and Unity crash after Google launches Project Genie AI appeared on BitcoinEthereumNews.com.

Stock prices for several video game companies dropped on Friday afternoon following Google’s announcement of a new artificial intelligence tool that can build interactive digital environments from basic instructions. Take-Two Interactive, the company behind “Grand Theft Auto,” saw its shares fall 10%. Gaming platform Roblox dropped more than 12%, and Unity Software, which makes tools for game developers, declined 21%. Google’s new system, called “Project Genie,” lets people create virtual worlds by typing descriptions or uploading pictures. The experimental prototype is now available to Google AI Ultra subscribers in the United States. This technology could change the way games have been developed for more than ten years and push creators to adjust to rapidly advancing tools. Google explained in a Thursday blog post that the system works differently from existing technology. “Unlike explorable experiences in static 3D snapshots, Genie 3 generates the path ahead in real time as you move and interact with the world. It simulates physics and interactions for dynamic worlds,” the company wrote. While the underlying Genie AI technology has existed since 2024, Project Genie marks its first public release. Google is launching the tool through Google Labs, where it operates as one of the company’s experimental projects. The system is built on research from DeepMind’s Genie 3 world-model and allows people to create and explore brief interactive settings. Users can also make new versions by changing their initial instructions, though it does not function as a complete game engine or professional development tool. How does Google’s Project Genie work? Examples on Google’s Project Genie website demonstrate various scenarios. One shows a cat riding a Roomba vacuum through a living room. Another feature is a car driving across the surface of a rocky moon. A third displays someone in a wingsuit gliding down a mountainside. People can…

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Filed under: News - @ January 30, 2026 9:21 pm