Googles Genie 3 AI gets gaming studios worrying about their future

Google has just rolled out a new Artificial Intelligence (AI) feature which threatens to destroy the future of gaming studios by allowing people to generate their own games. Project Genie has now released to Google AI Ultra subscribers over in the US, and users have already signalled 'the end of gaming studios,' after one person created 'GTA 6 Greenland Edition.'

Taking to X, one user shared a 43-second clip of what appears to be the most realistic game footage we've ever seen, despite it being generated in just 'a couple of minutes'.

"Google latest AI makes u generate games in a couple of minutes. That's mad crazy," they wrote, adding: "GTA 6 Greenland Edition. It is definitely the end of the gaming studios."

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Step inside Project Genie: our experimental research prototype that lets you create, edit, and explore virtual worlds. 🌎 pic.twitter.com/HQr1FRNlpy

Google DeepMind (@GoogleDeepMind) January 29, 2026

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Given the fact that the real GTA 6 has already been in development for around eight years, we're guessing you can't actually create a real game in a matter of minutes, even when using sophisticated technology like Google's Genie Project, but it certainly does ring alarm bells for the future of creative roles like game developers.

One X user, who owns a gaming company, wrote: "Frankly insane. I was probably one of the most psychologically prepared person in the world for this, and yet it still hits me like a truck."

Sharing a clip someone had made, which looks exactly like real footage from behind the counter of a Dunkin' Donuts, he added: "Humanity is 100% creating the Matrix. Or rather, matrices. Generated on demand, on the fly. It's obvious that the end state of video games is full simulation."

Google announced the futuristic software as part of Genie 3, which was unveiled last year, allowing users to generate virtual interactive spaces simply using text or image prompts.

While the technology is certainly impressive, it seems not everyone in the gaming space is concerned, with many responding on X to highlight its limitations.

"Yeah okay calm down, it generates 60 seconds max, has no gameplay, has nothing except walking and costs $200 a month," one wrote, adding: "It is impressive but the gaming industry has nothing to worry about for a while."

Another added: "Most game studios won't go anywhere because your average person lacks the wherewithal to refine a game to AAA standard. You can make it look pretty, sure, but I bet it runs like shit."

Meanwhile, the Verge reports that Google released Project Genie out of curiosity more than anything, as it wanted to see how people would actually use it, so watch this space.