The recent announcement by Google regarding its Project Genie tool, which allows users to create interactive experiences through AI, has led to a noticeable decline in the stock prices of several prominent video game companies. Notably, Take-Two Interactive saw its stock drop by 7.93 percent, closing at $220.30. Other companies, including Roblox and Unity, also experienced significant decreases. This development raises questions about the potential impact of AI on the gaming industry, particularly regarding competition and innovation. While the introduction of such technology could present opportunities for growth, it also poses risks for traditional gaming companies that may struggle to adapt. At this stage, it is essential to monitor how these companies respond to the evolving landscape and whether they can leverage AI to enhance their offerings. A final assessment of the long-term implications would be premature at this point.