Take-Two CEO Praises Google's Project Genie AI as Future Beacon

Feb 4, 2026, 2:21 AM
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Take-Two Interactive's CEO, Strauss Zelnick, has expressed enthusiasm for Google's recently launched Project Genie, an AI-powered tool designed for creating interactive virtual worlds. This new technology allows users to generate dynamic environments through text prompts and images, marking a notable step forward in game development tools.
Despite the excitement, the announcement triggered a sell-off in shares of major gaming firms, including Take-Two, which saw a decline of 7.9% following the news. Investors appear concerned about potential competition from Google's foray into the gaming space, particularly as it relates to simplified content creation tools that could challenge established platforms like Unity and Roblox.
Project Genie, currently available to Google AI Ultra subscribers in the US, enables users to create immersive worlds that last up to 60 seconds. The tool utilizes advanced AI models, such as Genie 3 and Gemini, to simulate physics and interactions within these environments, although it has been noted that the prototype faces limitations, including imperfect visual rendering and control issues.
In an interview with GamesIndustry.biz, Zelnick highlighted the potential of Project Genie to revolutionize how games are developed and experienced. He remarked that while the current iteration of the technology has its flaws, it represents an important direction for the future of gaming. "This is the beginning of something that will ultimately change how games are created," he stated, suggesting that such tools could significantly enhance the creative process for developers.
Industry experts have mixed opinions on the implications of Project Genie. Andrew Green, CEO of Storygrounds, emphasized that while the technology is impressive, it doesn't yet capture the complexities of game design, which involve elements like narrative and emergent behavior. He warned that investors may not fully understand the nuances of game development, with the market's reaction reflecting a lack of comprehension regarding what truly makes a game engaging.
Unity's CEO, Matthew Bromberg, also weighed in, noting that rather than viewing Google's release as a threat, it could serve as an accelerator for the industry. He expressed optimism that video-based generation could complement existing workflows, enhancing early-stage content creation.
The broader implications of AI in gaming are a hot topic, as Zelnick pointed out that the industry has historically adapted to technological advancements. He stated, "AI will play a key role in making our business more efficient," emphasizing that the integration of AI tools is expected to increase productivity and employment rather than replace jobs.
As the gaming industry evolves, Zelnick remains focused on Take-Two's flagship franchises, including the highly anticipated Grand Theft Auto 6, set for release in fall 2025. He believes that the innovative capabilities offered by tools like Project Genie could eventually lead to new ways of engaging with these beloved titles, creating excitement among players while maintaining the high standards of quality that Take-Two is known for.
In conclusion, while the immediate market response to Google's Project Genie has been cautious, leaders like Strauss Zelnick see the potential for transformative change in the gaming landscape. As the industry continues to adapt and innovate, the integration of AI technologies may pave the way for a new era of interactive entertainment.

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