World models hallucinations.

Real-time rendering and generative AI video models represent opposite extremes in a design continuum. Traditional game engines prioritize efficiency and performance through handcrafted content and first-principles algorithms, while AI world models sacrifice compute efficiency for content creation speed through learned hallucinations. The future likely lies somewhere between these extremes, combining interpretable world state and discrete object representation from traditional engines with AI-driven generation and simulation. This hybrid approach could enable new forms of interactive content creation that balance control, efficiency, and automation differently than current game engines.