Gaming stocks rebound from sell-off as analysts dismiss Google’s new AI project as merely “a one-minute-long walking simulator generator”
Investor fears about the impact of Google’s Project Genie on the broader gaming market may have been an overreaction, analysts at mBank said in a note on Monday.
According to analyst Piotr Poniatowski, Friday’s sell-off was “unjustified.”
Unity Software shed 24%, Roblox lost 13%, and Take-Two closed down 8% heading into the weekend. All three are up at least 3% on Monday.
Project Genie, Google’s new generative-AI prototype, can create interactive worlds from a text or image prompt, and users are already testing its ability to recreate copyrighted worlds. But, as Poniatowski noted, interactivity within those generated worlds is very limited:
“Control is limited to movement and jumping. Users cannot perform complicated actions such as crouching, climbing, dodging, evading, shooting, etc. It is simply moving and jumping around the generated world. There are no NPCs, no interactions and no depth. As of writing, Project Genie is essentially just a one-minute-long walking simulator generator.”
The note mirrors a post on X by Unity CEO Matthew Bromberg on Friday, in which the exec said models like Google’s are “unsuitable on their own for games that require consistent, repeatable player experiences.”
Unity Software shed 24%, Roblox lost 13%, and Take-Two closed down 8% heading into the weekend. All three are up at least 3% on Monday.
Project Genie, Google’s new generative-AI prototype, can create interactive worlds from a text or image prompt, and users are already testing its ability to recreate copyrighted worlds. But, as Poniatowski noted, interactivity within those generated worlds is very limited:
“Control is limited to movement and jumping. Users cannot perform complicated actions such as crouching, climbing, dodging, evading, shooting, etc. It is simply moving and jumping around the generated world. There are no NPCs, no interactions and no depth. As of writing, Project Genie is essentially just a one-minute-long walking simulator generator.”
The note mirrors a post on X by Unity CEO Matthew Bromberg on Friday, in which the exec said models like Google’s are “unsuitable on their own for games that require consistent, repeatable player experiences.”
