Last week, Google unveiled Project Genie, an AI-based virtual world creator that has yet to fully develop. This announcement appeared to unsettle several investors in the gaming sector, leading to a decline in stock prices for companies like Take-Two, Roblox, and Unity. The apprehension stemmed from concerns that Genie might predominantly or entirely replace user-generated content in the future. However, at least one CEO, Strauss Zelnick of Take-Two, seems unfazed by the market reaction.
In a recent discussion with IGN before Take-Two’s Q3 earnings call, Zelnick addressed whether he sees Genie as a threat to Take-Two’s operations. He expressed confidence rather than concern. He stated that the company’s foundation has relied on machine learning and AI for over 25 years, viewing new technologies as exciting tools that can enhance their work. He has previously mentioned their commitment to embracing AI in their business model.
Zelnick remarked, “Tools are what drive additional innovation in what we do, drive efficiency, and drive creativity.” He distinguished the difference between tools and content, emphasizing that creators utilize tools to craft entertainment. He echoed that successful marketing is fundamental, primarily performed by well-established entertainment companies with the resources to support launches, like Take-Two.
When questioned about the potential for generative AI to produce a competitive game like Grand Theft Auto, Zelnick maintained his stance that no tool can single-handedly create a hit game. He highlighted that while some authors integrate AI into their writing, the overarching creative process remains human-driven. This, he believes, is essential for creating quality entertainment, despite advancements in technology.
Addressing concerns about the proliferation of AI tools potentially cloning existing titles, Zelnick acknowledged some intellectual property worries but emphasized the importance of collaboration with the gaming community. He stated that while they guard their intellectual property, they have allowed users to engage significantly with their games, including examples like the FiveM initiative for user-generated content.
Zelnick underscored that user-generated content coexists with professionally created entertainment. For instance, while platforms like YouTube are substantial, they only represent about 12.5% of total entertainment consumption, indicating that the majority remains produced by traditional creators.
In closing, Zelnick expressed confidence about the upcoming release of GTA 6, as marketing for the game is set to commence this summer. In the latest earnings report, Take-Two disclosed net bookings of $1.76 billion for the quarter and increased their annual expectations to between $6.65 billion and $6.7 billion.
Rebekah Valentine is a senior reporter for IGN. If you have a story tip, contact [email protected].
