Take-Two Interactive fell 10%, Roblox dropped 12%, and Unity Software slid nearly 20%. Investors fear the AI could reshape game development, reducing the time, cost, and human effort traditionally required for big-budget titles, according to The Reuters.

While still early-stage, Project Genie signals a future where AI may take a central role in creating games, leaving traditional developers and tools under pressure. The market’s swift reaction shows just how fast the gaming world could change; and how quickly investors respond when disruption looms.