Probably the most/worst to expect from this kind of thing would be game studios both real and fake making videos like this to try and market to prospective investors and/or customers.

Not exactly a new thing though, using non-gameplay footage to try and peddle games.

That's how it is with AI: garbage in, garbage out. What games are like nowadays? Garbage cinematic experiences with more walking than playing.

Yeah, this is what AI is going to be primarily used for. But don't just think it will be Kickstarter fraud. You're crazy if you didn't think that Activision or Bethesda took one look at this and went: "Oh shit! We can totally get these retards to pre-order the next game if we do this!"

You will not. Something like an endless runner would be plausible for an AI, but GTA requires object permanence. An AI that could create GTA-like moment-to-moment mechanics would be a curse to play if it's impossible to actually navigate from point A to point B.

Were any of these realtime captured though? Or just prompts that resulted in videos depicting what these games would be like?

Because if it's just video output based on gaming-related prompts, this isn't anything special.

And if it is playable, how does it know what the controls are or how to organise inputs for cause and effect? Wouldn't you have to give it the prompts to do so? For instance, how could it know shooting things kill them instead of incapacitating them? Or how would it know what the outcome should be for interacting with NPCs in that open-world prompt (viz., do you hit them, talk to them, hug them, kick them, shoot them)?

Lots of questions. I'm sure there are answers in that Twitter thread but I don't have Twitter and am not interested enough to go through the trouble of attempting to read the thread.

They forgot fluff up the prompt with "best quality, masterpiece, award winning, trending, etc"

Looks and sounds pretty realistic

Still a better actor than [insert any Hollywood darling here].