Take-Two stock at lowest point since GTA 6 delay, after Project Genie generative AI tool debuts

The Take-Two Interactive stock had already tumbled before the GTA 6 release date delay on November 19th. Even without another postponement, shares are now trading at an even lower price. At one point on January 30th, the stock had fallen more than 11% from its opening. Many analysts are blaming Project Genie, Google's latest generative AI tool, for spooking investors.

As Shinobi602 noted on social media, the crash has not only affected the GTA 6 publisher. Roblox and CD Projekt have also suffered losses, with game engines like Unity hit particularly hard.

How Google's new AI tool works

With the help of Gemini, Project Genie allows users to create 2D or 3D interactive environments by entering text prompts or supplying images. The world is fully simulated using a physics model, reacting as characters run, jump, or interact with objects.

Currently, the visuals only render at 24 fps and a maximum resolution of 720p. Nevertheless, Take-Two stockholders may see Project Genie as a glimpse into the future. Rockstar Games devs rely on a proprietary game engine to bring Vice City to life. Buyers dreading another potential GTA 6 delay have learned what a painstaking process this is.

Will Genie immediately impact on game development?

Google’s generative AI tool could speed up world-building at game studios. Companies without Rockstar Games' resources are desperate to ship competing titles more quickly. However, in its rudimentary state, Genie produces results that are more tech demos than full-fledged games.

Critics also believe that Genie is not a substitute for the talent of writers and artists. Take-Two Interactive CEO Strauss Zelnick expressed similar views when asked about AI's impact. He considers the tools a way for devs to become more efficient, rather than as an excuse to lay off employees.

Publishers, including Ubisoft and EA, are less hesitant to embrace generative AI. At this point, most examples of its use in AAA games have been limited to creating background objects or marketplace artwork. It may be inevitable that fewer humans become involved in game development. Still, the prevailing opinion is that investors are overestimating the Google tech’s influence even several years from now.