Will Smith's concert crowds are real, but AI is blurring the lines

I'm not sure about this specific instance, but AI generated movies will absolutely be the future, when you can create the exact shots you want with stability of the foreground, background, and characters, and edit it all together, it'll be an explosion of creativity just as with image generation currently.

To be clear, I don't think it'll be telling an AI to "create me a movie with X, Y, and Z" because AI reasoning is not there yet, but for the raw video generation, it's progressing steadily, as seen in r/aivideo.

The line between movie and games will blur. Once you can do generative movies, you can do games, and vice versa, there's no obvious delineation, and the technical problem is heavily overlapping. Games just has some scoped control inputs, like this: https://demo.dynamicslab.ai/chaos