Unity stock falls alongside Take-Two, Roblox after Google’s Project Genie launch

Investing.com — Unity Software (NYSE:U) stock tumbled 12% Friday, while Take-Two Interactive Software (NASDAQ:TTWO) fell 7% and Roblox Corporation (NYSE:RBLX) dropped 8% following Google’s announcement of Project Genie, a new AI-powered world creation tool.

The gaming and interactive software companies saw their shares decline as Google, a unit of Alphabet (NASDAQ:GOOGL), unveiled its experimental prototype that allows users to create, explore, and remix interactive virtual worlds. The new offering appears to have sparked investor concerns about potential competition for established game development platforms.

Project Genie, which is rolling out to Google AI Ultra subscribers in the U.S., leverages the company’s Genie 3 world model to generate dynamic, interactive environments in real time. The tool enables users to create customizable worlds through text prompts and images, with features including “World Sketching,” exploration capabilities, and remixing options.

The prototype represents Google’s push into immersive content creation, potentially challenging companies like Unity, which provides tools for game developers, and platforms like Roblox, which offers user-generated gaming experiences. Take-Two, known for franchises like Grand Theft Auto, could also face competitive pressure from simplified content creation tools.

Google described Project Genie as part of its broader artificial general intelligence (AGI) mission, noting that the technology simulates physics and interactions for dynamic environments while maintaining consistency across various scenarios.

While the company acknowledged several limitations of the current prototype, including imperfect visual rendering and occasional control issues, the technology signals Google’s ambitions in the interactive content creation space that has traditionally been dominated by specialized gaming and development platforms.

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