Consider instead the possibility this may be used as a rendering layer for data backing it. Instead of shipping three-dimensional models and GBs of textures, you can ship a couple photos or a blueprint file or <any other modalities/whatever> and a detailed text description for significantly less storage. Now imagine the world model can adapt the styling of this world on the fly, where every person‘s experience could be unique in terms of visuals, but consistent in terms of the gameplay.

It’s been my belief for several years that this is how the future of games will be constructed. Data in the background, game engine for rules application/ physics execution/orchestration/maybe low-poly rendering, an AI world model taking low resolution input in generating customized visuals/effects/textures/everything, even camera location, but still constrained by concrete rules in the game engine.

I’m certain one day it might all be handled by AI, but the above seems much more realistic and achievable that expecting AI to do all of these things, at one, correctly, every frame.