mBank: AI Fears Overdone, Game Stock Sell-Off Lacks Fundamental Basis

Polish bank mBank said Monday (February 2, 2026) that the recent sharp sell-off in video game developer stocks—triggered by concerns over Google’s AI tool Project Genie—is an overreaction not grounded in the technology’s current limitations. Following Google’s Friday demo of an AI prototype that generates playable 3D worlds, shares of Unity Software (U), Roblox (RBLX), and CD Projekt plunged, but Unity and Roblox rebounded nearly 6% and 3%, respectively, in Monday’s trading. mBank analysts, including Piotr Poniatowski, argue that Project Genie’s constraints in gameplay duration and experience undermine near-term disruption risks. They contend that large studios with strong IPs and narrative capabilities—particularly AAA developers—stand to benefit long-term as AI lowers barriers for indie creators, intensifying competition among smaller players while reinforcing the dominance of established firms. Wedbush analyst Alicia Reese echoed this view, noting AAA studios’ core value remains hard to replicate.