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AI can’t make good video game worlds yet, and it might never be able to

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AI can’t make good video game worlds yet, and it might never be able to

This is The Stepback, a weekly newsletter breaking down one essential story from the tech world. For more news about video game industry’s pushback against generative AI, follow Jay Peters. The Stepback arrives in our subscribers’ inboxes at 8AM ET. Opt in for The Stepback here.

Long before the generative AI explosion, video game developers made games that could generate their own worlds. Think of titles like Minecraft or even the original 1980 Rogue that is the basis for the term “roguelike”; these games and many others create worlds on the fly with certain rules and parameters. Human developers painstakingly work to make sure the worlds their games can create are engaging to explore and filled with things to do, and at their best, these types of games can be replayable for years because of how the environments and experiences can feel novel every single time you play.

But just as other creative industries are pushing back against an AI slop future, generative AI is coming for video games, too. Though it may never catch up with the best of what humans can make now.

Generative AI in video games has become a lightning rod, with gamers getting mad about in-game slop and half of developers thinking that generative AI is bad for the industry.

Big video game companies are jumping into the murky waters of AI anyway. PUBG maker Krafton is turning into an “AI First” game company, EA is partnering with Stability AI for “transformative” game-making tools, and Ubisoft, as part of a major reorganization, is promising that it would be making “accelerated investments behind player-facing Generative AI.” The CEO of Nexon, which owns the company that made last year’s mega-hit Arc Raiders, put it perhaps the most ominously: “I think it’s important to assume that every game company is now using AI.” (Some indie developers disagree.)

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The bigger game companies often pitch their commitments as a way to streamline and assist with game development, which is getting increasingly expensive. But adoption of generative AI tools is a potential threat to jobs in an industry already infamous for waves of layoffs.

Last month, Google launched Project Genie, an “early research prototype” that lets users generate sandbox worlds using text or image prompts that they can explore for 60 seconds. Right now, the tool is only available in the US to people who subscribe to Google’s $249.99-per-month AI Ultra plan.

Project Genie is powered by Google’s Genie 3 AI world model, which the company pitches as a “key stepping stone on the path to AGI” that can enable “AI agents capable of reasoning, problem solving, and real-world actions,” and Google says the model’s potential uses go “well beyond gaming.” But it got a lot of attention in the industry: It was the first real indication of how generative AI tools could be used for video game development, just as tools like DALL-E and OpenAI’s Sora showed what might be possible with AI-generated images and video.

In my testing, Project Genie was barely able to generate even remotely interesting experiences. The “worlds” don’t let users do much except wander around using arrow keys. When the 60 seconds are over, you can’t do anything with what you generated except download a recording of what you did, meaning you also can’t plug in what you generated into a traditional video game engine.

Sure, Project Genie did let me generate terrible unauthorized Nintendo knockoffs (seemingly based off of the online videos Genie 3 is trained on), which raised a lot of familiar concerns about copyright and AI tools. But they weren’t even in the same universe of quality as the worlds in a handcrafted Nintendo game. The worlds were silent, the physics were sloppy, and the environments felt rudimentary.

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The day after Project Genie’s announcement, stock prices of some of the biggest video game companies, including Take-Two, Roblox, and Unity, took a dip. That resulted in a little damage control. Take-Two president Karl Slatoff, for example, pushed back strongly on Genie in an earnings call a few days later, arguing that Genie isn’t a threat to traditional games yet. “Genie is not a game engine,” he said, noting that technology like it “certainly doesn’t replace the creative process,” and that, to him, the tool looks more like “procedurally generated interactive video at this point.” (The stock prices ticked back up in the days after.)

Google will almost certainly continue improving its Genie world models and tools to generate interactive experiences. It’s unclear if it will want to improve the experiences as games or if it will instead focus on finding ways for Genie to assist with its aspirational march toward AGI.

However, other leaders of AI companies are already pushing for interactive AI experiences. xAI’s Elon Musk recently claimed that “real-time” and “high-quality” video games that are “customized to the individual” will be available “next year,” and in December, he said that building an “AI gaming studio” is a “major project” for xAI. (Like with many of Musk’s claims, take his predictions and timelines with a grain of salt.) Meta’s Mark Zuckerberg, who is now pushing AI as the new social media after the company cut jobs in its metaverse group, envisions a future where people create a game from a prompt and share it to people in their feeds. Even Roblox, a gaming company, is pitching how creators will be able to use AI world models and prompts to generate and change in-game worlds in real time, something that it calls “real-time dreaming.”

But even in the most ambitious view where AI technology is feasibly able to generate worlds that are as responsive and interesting to explore as a video game that runs locally on a home console, PC, or your smartphone, there’s a lot more that goes into making a video game than just creating a world. The best games have engaging gameplay, include interesting things to do, and feature original art, sound, writing, and characters. And it takes human developers sometimes years to make sure all of the elements work together just right.

AI technology isn’t yet ready to generate games, and whoever thinks it might be is fooling themselves. But AI-generated video is still bad, and it was still used to make a bunch of bad ads for the Super Bowl, so tech companies are probably still going to put a lot of effort toward games made with generative AI. In an already unstable industry, even the idea that AI tools could rival what humans can make might have massive ramifications down the line.

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But the complexity of games is different from AI video, which has improved considerably in a short period of time but has fewer variables to account for. AI game-making tools will almost certainly improve, but the results might never close the gap from what humans can make.

  • In a long X post, Unity CEO Matthew Bromberg argues that world models aren’t a risk, but a “powerful accelerator.”
  • While the video game industry probably shouldn’t feel threatened by AI world models just yet, generative AI tools will continue to be controversial in game development. Even Larian Studios, beloved for games like Baldur’s Gate 3, isn’t immune to backlash.
  • Steam requires that developers disclose when their games use generative AI to generate content, but in a recent change, developers don’t have to disclose if they used “AI powered tools” in their game development environments.
  • Some games, like the text-based Hidden Door and Amazon’s Snoop Dogg game on its Luna cloud gaming service, are embracing generative AI as a core aspect of the game.
  • NYU games professor Joost van Dreunen has a take on the situation around Project Genie.
  • Scientific American has a great explanation of how world models work.
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Dyson’s powerful 360 Vis Nav robovac is down to $279.99 for a limited time

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Dyson’s powerful 360 Vis Nav robovac is down to 9.99 for a limited time

If you’re tired of running your vacuum multiple times just to get the dirt and debris out of the carpets in your living room, Dyson’s 360 Vis Nav is worth a look. It’s one of the more powerful robot vacuums currently available, and now through May 11th (or while supplies last), it’s on sale at Woot for an all-time low of $279.99 ($919 off) with a full two-year warranty.

The last-gen 360 Vis Nav offers a whopping 65 air watts of suction, allowing it to pull dirt, dust, and pet hair from carpets impressively well. In her brief time testing the robovac, my colleague Jennifer Pattison Tuohy said the Dyson “demolished a pile of dry oatmeal in seconds,” adding that she briefly worried it might even suck up the tassels on her large rug (it didn’t). By comparison, many robot vacuums — including Dyson’s new $1,200 Spot + Scrub AI — require multiple passes to fully eradicate the same kind of mess on your floor.

What’s more, the robovac’s small, D-shaped design and the location of its ultra-fluffy brush allow it to dig into edges and corners more effectively than many of the more roundish robot vacuums, while its lower profile lets it easily get under most beds and sofas. The roomy 500ml dustbin also means you likely won’t need to empty it too often, while Dyson’s built-in handle and terrific quick-release button make removing said bin a relatively simple task when it’s time to do so.

While it is undeniably powerful, it’s worth noting that the 360 Vis Nav lacks a few features found on some of its more modern rivals. Although its navigation worked well enough during our testing, it lacks AI-powered obstacle avoidance and doesn’t come with a self-emptying dock. Battery life is also relatively short at around 65 minutes per charge. Nonetheless, if your top priority is quickly removing dust, dirt, and pet hair from carpets without multiple passes, the Dyson remains an option worth considering, especially at this discounted price.

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Global scam crackdown leads to 276 arrests

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Global scam crackdown leads to 276 arrests

NEWYou can now listen to Fox News articles!

We’ve often warned you about romance scams and crypto “investment” opportunities that feel too good to pass up. Now, there’s a major update that shows just how organized these operations have become.

The Department of Justice and Federal Bureau of Investigation announced a sweeping international operation that led to at least 276 arrests and the shutdown of multiple scam centers tied to cryptocurrency fraud. These networks targeted Americans and drained millions of dollars from victims.

The operation spanned continents and involved coordinated efforts by law enforcement and tech companies.

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TOP 5 SCAMS SPREADING RIGHT NOW

The Department of Justice and FBI say international scam networks used romance and fake crypto investment schemes to steal millions from victims. (Helena Dolderer/Picture Alliance)

How the cryptocurrency scam crackdown unfolded

Authorities worked with partners around the world, including the Dubai Police and law enforcement agencies in Thailand and beyond. Together, they dismantled at least nine scam centers linked to large-scale crypto fraud.

Several suspects now face federal charges in the United States, including wire fraud and money laundering. Investigators say these operations functioned like businesses, with recruitment, management layers and structured systems designed to deceive victims.

Officials made it clear that this effort sends a message. Fraud crosses borders, and enforcement is now doing the same.

How crypto investment scams target victims

These schemes often follow a pattern known as “pig-butchering.” It is a slow, calculated tactic that builds trust before any money is involved.

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A scammer may reach out through social media or a messaging app and start a casual conversation. Over time, that interaction turns more personal. In some cases, it feels like a real relationship. Once trust is established, the topic shifts toward investing, often framed as a unique crypto opportunity.

Victims are guided through setting up accounts and transferring funds to platforms that appear legitimate. The dashboards may even show fake gains to build confidence. At that point, control of the money is already gone. Funds are quickly moved through multiple accounts and eventually end up with the scammers.

Many victims are encouraged to keep going, sometimes borrowing money or taking out loans to invest more. By the time the truth becomes clear, the losses can be devastating.

How Meta Platforms, Inc. helped track scam networks

Meta Platforms, Inc. played a key role in the investigation by providing data that helped law enforcement identify and track these networks.

The company says it has taken aggressive action across its platforms. In 2025 alone, Meta removed more than 159 million scam ads and shut down 10.9 million accounts linked to scam centers. More recently, it disabled over 150,000 accounts connected to these networks as part of a coordinated enforcement effort.

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“Meta is committed to combatting online fraud and scams, and we are proud to partner with law enforcement in these efforts,” Chris Sonderby, Meta’s vice president and deputy general counsel, said. “We applaud the DOJ and FBI for their leadership in holding criminal scammers accountable and protecting American consumers.”

FROM FRIENDLY TEXT TO FINANCIAL TRAP: THE NEW SCAM TREND

Federal authorities announced a sweeping international crackdown that led to at least 276 arrests tied to cryptocurrency scam centers targeting Americans. (Kurt “CyberGuy” Knutsson)

New tools to stop cryptocurrency scams in real time

Meta is also rolling out new protections across its apps to help users spot scams before they get pulled in.

On Facebook, users may see alerts tied to suspicious friend requests, especially when an account shows unusual behavior such as limited connections or inconsistent location details. 

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On WhatsApp, new warnings are designed to prevent scammers from linking their own devices to someone else’s account, giving users a chance to pause before approving a risky request.

Messenger is also expanding its scam detection tools. When a conversation shows patterns linked to common fraud tactics, users may receive prompts that explain the risk and suggest actions like blocking or reporting the account.

Why this cryptocurrency scam crackdown matters to you

This operation highlights how organized these scam networks have become. These are not random messages from a single person. They are coordinated groups running structured operations designed to build trust, create urgency and move money quickly.

Even with hundreds of arrests, the threat remains. New networks continue to emerge, often using the same playbook with slight changes. That means staying informed is still one of the most effective ways to protect yourself. 

Ways to stay safe from cryptocurrency scams

Scammers follow familiar patterns, which means there are clear warning signs you can watch for and simple steps you can take to protect yourself. 

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1) Slow down unexpected connections

If someone you do not know reaches out and quickly builds a personal connection, slow things down and question the situation. Scammers rely on momentum, so taking a pause can help you spot inconsistencies. 

2) Verify investment platforms before sending money

Before sending money to any investment platform, take time to verify that it is legitimate. A professional-looking website or app does not guarantee it is real. Look for independent reviews and official registration details.

3) Avoid sending crypto to unknown sources

Avoid sending cryptocurrency to individuals or platforms you cannot confirm. Once those transactions go through, they are extremely difficult to recover.

4) Watch for pressure and urgency

Be aware of pressure. If someone pushes you to act quickly or invest more, that urgency is often a warning sign.

5) Use strong antivirus protection

Strong antivirus software can help block malicious links, fake investment sites and other threats before they reach you, adding another layer of defense against scam attempts. Get my picks for the best 2026 antivirus protection winners for your Windows, Mac, Android and iOS devices at Cyberguy.com.

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THE ONE THING SCAMMERS CHECK BEFORE TARGETING YOU ONLINE

Meta said it removed more than 159 million scam ads in 2025 and helped investigators track networks tied to cryptocurrency fraud. (Halfpoint/Getty Images)

6) Limit your personal data exposure

Scammers often rely on publicly available information to build trust. Reducing how much of your personal data appears online by using a data removal service can make it harder for them to target you in the first place. Check out my top picks for data removal services and get a free scan to find out if your personal information is already out on the web by visiting CyberGuy.com.

7) Strengthen your account security

It also helps to strengthen your digital security. Enable two-factor authentication (2FA) on your accounts and use trusted security tools to reduce exposure to malicious links and messages.

8) Report scams as soon as possible

If you believe you have been targeted or defrauded, report it to the FBI’s Internet Crime Complaint Center at ic3.gov as soon as possible.

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Kurt’s key takeaways

This global crackdown is a meaningful step forward. It shows what can happen when law enforcement, tech companies and international partners work together. At the same time, these scams are not going away. The tactics will continue to evolve, and new networks will take the place of those that were shut down. Awareness and caution remain your strongest defenses.

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We report a lot about scams but not so much about scammers getting caught. Does this make you feel like real progress is being made in stopping them? Let us know by writing to us at CyberGuy.com.

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  • Get my best tech tips, urgent security alerts and exclusive deals delivered straight to your inbox.
  • For simple, real-world ways to spot scams early and stay protected, visit CyberGuy.com trusted by millions who watch CyberGuy on TV daily.
  • Plus, you’ll get instant access to my Ultimate Scam Survival Guide free when you join.

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Asus chases Elgato with its own secondary touchscreen display

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Asus chases Elgato with its own secondary touchscreen display

Asus’s latest gaming monitor is a little smaller than usual. The ROG Strix XG129C, announced on Friday, is a 12.3-inch touchscreen IPS display that’s intended to be a sidekick for a larger main monitor, similar to the 14.1-inch secondary display in the 2020 Asus ROG Zephyrus Duo 15. It’s a slightly smaller competitor to Corsair’s Xeneon Edge, which has a 14.5-inch display, but the same 720p resolution.

Asus says the XG129C covers 125 percent of the sRGB color gamut and 90 percent of the DCI-P3 color gamut. It also comes with a one-year subscription for the hardware monitoring tool AIDA64 Extreme, which would usually cost $65. Besides acting as a performance monitor for your PC, sidekick displays like this can also be handy as an extension for streaming or editing setups, much like Elgato’s Stream Deck.

Along with the little XG129C, Asus also announced the ROG Strix OLED XG34WCDMS, a 34-inch RGB Tandem QD-OLED gaming monitor. It features a 280Hz refresh rate and a 3440 x 1440p resolution, and, according to Asus, covers 99 percent of the DCI-P3 color gamut. Asus has not yet officially announced pricing for either display.

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