US EditionGaming Stocks Rebound From Sell-Off as Analysts Dismiss Google’s New AI Project as Merely “a One-Minute-Long Walking Simulator Generator”
Analysts say fears driving recent sell-off in game developer stocks ignore Project Genie’s current limited interactivity and usability and predict benefits for large studios.
- In markets on Monday, U.S.-listed video-game developer stocks plunged amid fears of disruption from Google’s Project Genie, drawing fresh analyst notes and market attention.
- Project Genie generates playable worlds from text and image prompts but limits interactivity to movement and jumping with no NPCs, making it effectively a one-minute walking simulator.
- MBank analyst Piotr Poniatowski said Friday’s sell-off was unjustified, and Unity CEO Matthew Bromberg noted Google’s models are unsuitable for consistent game experiences.
- Unity Software shed 24%, Roblox lost 13%, and Take-Two fell 8% heading into the weekend, but Unity and Roblox rebounded in premarket trading on Monday as mBank said the selloff overlooked Genie’s limitations.
- Analysts said promotional videos for Project Genie suggest AI tools could boost solo projects and intensify competition among smaller game studios, shaping near-term investor sentiment.
16 Articles
16 Articles
10 cool examples from Google's Project Genie
Google rolled out a brand new experimental AI tool last Thursday called Project Genie. By Friday, video game stocks were tumbling as a result. Gaming industry giants like Unity Software, Roblox, Take-Two, and AppLovin all felt the effects of Project Genie, at least on Wall Street.Project Genie, which is currently only available to subscribers to Google's $249 per month AI Ultra plan, is a new generative AI world model from the company's DeepMind…
AI Hype Hits Gaming Stocks, But Experts Say Risk Overstated – channelnews
Shares in major video-game developers tumbled last week amid fears that Google’s new AI tool Project Genie could disrupt the industry – but analysts say the panic may have been overblown. Unity Software Inc., Roblox Corp., and CD Projekt SA all saw sharp declines after Google unveiled the AI prototype, which allows users to generate playable 3D worlds using text prompts or images. The tool can create characters and environments, though its curre…
AppLovin stock rebounds after Google ‘Project Genie’ selloff as Feb. 11 earnings loom
New York, February 2, 2026, 19:11 EST — Trading after hours. AppLovin shares climbed in after-hours Monday, building on a bounce from Friday’s steep fall. The move came after new analyst reports downplayed concerns over Alphabet’s recently launched AI gaming tool. The stock has swung sharply amid a shift in narrative: concerns that AI-generated “world models” might alter game development and accelerate player churn. While AppLovin no longer deve…
Google's Project Genie causes gaming stock market chaos
Google’s Project Genie is a brand-new AI tool from the company that is aimed at allowing the creation of 3D AI-generated worlds, intended for game development, and reportedly caused an upheaval in the share prices of several gaming companies. Following its reveal at the tail end of last week, the share prices of Nintendo, Unity, CD Projekt, Take-Two, and others fell as investors sold off stock. AI in game development has been a hot topic for a w…
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