According to a research report, the emergence of AI-generated physical world models like Genie3 has sparked market discussions about the potential disruption of the gaming industry. The market is overestimating the short-term disruptive power of AI models on the gaming sector while underestimating their long-term value as enabling tools. World models, represented by Genie3, are essentially high-efficiency content generation tools, but they do not touch the core of gaming—gameplay design, numerical balance, and long-term operations. Leading game developers still possess a strong content moat.
The main viewpoints are as follows: Are world models a disruptive productive force for the gaming industry? What is the direction of their application within the sector? The analysis suggests that the current application of world models in game production is still in its early stages, providing localized empowerment. Efficiency improvements are more noticeable in pre-research and 3D asset creation. In the future, they are more likely to function as single-scenario generation tools rather than comprehensive game development platforms.
Will new AI technologies reshape the gaming industry chain, and who will benefit? The assessment is that the most directly impacted segments are the highly standardized outsourcing services within the industry chain, primarily including art asset production, basic audio recording, and some code writing. One direction for profit pool migration is towards the creative and management segments at the upstream end of the gaming industry chain.
Leading game developers still maintain a strong content moat. In the medium to long term, companies skilled at leveraging AI to empower creation, exploring AI's potential, and continuously consolidating their advantages in IP and gameplay are expected to possess sustainable advantages during this transformation. "Ecosystem platforms" that aggregate creators and tools are likely to capture new production and distribution channels by embracing AI and innovating with tools, thereby gaining new growth increments.
Midstream engine providers, due to high barriers built from pipeline data, are difficult to replace in the short term, but the long-term reconstruction of their business models still needs verification. Small and medium-sized developers and studios face both the equalizing opportunity of lowered creation barriers and the challenge of a surge in homogenized content.
Regarding investment targets, it is advised to focus on leading game developers proficient in utilizing AI, such as NetEase, Inc. and Take-Two Interactive Software, Inc., as well as "ecosystem platforms" that aggregate creators and tools, such as Roblox Corporation and XD Inc. Risk factors include the lowering of game production barriers and intensified market competition, potential competition from AI-native gameplay, copyright issues surrounding AI-generated content, and low user acceptance of AI content.