Shares of major video game companies plunged sharply on January 30, 2026, after Google unveiled Project Genie. This new AI world-generation tool can create interactive digital environments from simple text or image prompts. Take-Two Interactive, the publisher behind Grand Theft Auto, saw its stock fall about 10 %, while Roblox dropped over 12 %, and Unity Software, one of the leading game development engines, plunged around 21 %-24 % in trading. Investors reacted to fears that Project Genie could disrupt traditional game development tools and platforms by lowering barriers to creating virtual worlds.
Project Genie — powered by Google’s Genie 3 world-model AI — can simulate physics and generate environments in real time, a capability that analysts and traders say could eventually change how immersive digital experiences are built, even though the tool is still in early, limited use. The sell-off wiped billions off the market value of these gaming stocks as markets priced in potential long-term industry shifts.