Position: Next-Generation Game Engines Should Be Built on Interactive Generative Video

Modern game development faces significant challenges in creativity and cost due to predetermined content in traditional game engines. Recent breakthroughs in video generation models, capable of synthesizing realistic and interactive virtual environments, present an opportunity to revolutionize game creation. This position paper argues that next-generation game engines should be built on Interactive Generative Video (IGV). We term such engines Generative Game Engines (GGE), with IGV as the core technology enabling unlimited novel content generation. We argue why IGV is uniquely suited for this role, identify what is missing, and examine progress across six functional modules to show how each supports our position, culminating in a five-level maturity roadmap (L0--L4). Drawing on discussions with researchers, game developers, and community participants, we present eight alternative views and ethical considerations to stimulate debate.