Video Game Stocks Plunge on Fears Google’s Genie 3 Will Replace Game Engines

When Google unveiled Genie 3, an AI that generates explorable 3D worlds from simple text prompts, investors responded by dumping video game stocks en massewiping out billions in market value in mere hours. But in their rush to flee, Wall Street confused “playable environments” with actual video games, ignoring the technology’s hard limits while threatening the human creativity that makes games worth playing. As the industry faces a future of automated mediocrity driven by shareholder demands, the panic reveals a deeper truth: investors aren’t betting on better games, just cheaper ones.