# Matrix-Game 3.5: Enhancing Real-Time Streaming Interactive World Models with Patch Memory

arXiv: https://arxiv.org/abs/2608.29910 · HTML: https://mlsanity.com/paper/2608.29910/

## Key facts

- Cited by 9 papers in the map (data through 14 Oct 2026).
- Placed in Video-generation world models and simulators, one of 11 directions in World models.
- Builds on 54 of its 57 references that are in the map.
- First posted on arXiv 30 Aug 2026.

## Placed in

- World models / [Video-generation world models and simulators](https://mlsanity.com/wm/video-generation-world-models-and-simulators/)
- Diffusion models / [Video generation](https://mlsanity.com/diffusion/video-generation/)

## Builds on (most cited first, 30 of 54)

- [High-Resolution Image Synthesis with Latent Diffusion Models](https://mlsanity.com/paper/2112.10752/) (2021)
- [The Unreasonable Effectiveness of Deep Features as a Perceptual Metric](https://mlsanity.com/paper/1801.03924/) (2018)
- [Scalable Diffusion Models with Transformers](https://mlsanity.com/paper/2212.09748/) (2022)
- [RoFormer: Enhanced Transformer with Rotary Position Embedding](https://mlsanity.com/paper/2104.09864/) (2021)
- [Wan: Open and Advanced Large-Scale Video Generative Models](https://mlsanity.com/paper/2503.20314/) (2025)
- [VBench: Comprehensive Benchmark Suite for Video Generative Models](https://mlsanity.com/paper/2311.17982/) (2023)
- [HunyuanVideo: A Systematic Framework For Large Video Generative Models](https://mlsanity.com/paper/2412.03603/) (2024)
- [One-step Diffusion with Distribution Matching Distillation](https://mlsanity.com/paper/2311.18828/) (2023)
- [Genie: Generative Interactive Environments](https://mlsanity.com/paper/2402.15391/) (2024)
- [Depth Anything 3: Recovering the Visual Space from Any Views](https://mlsanity.com/paper/2511.10647/) (2025)
- [Improved Distribution Matching Distillation for Fast Image Synthesis](https://mlsanity.com/paper/2405.14867/) (2024)
- [Self Forcing: Bridging the Train-Test Gap in Autoregressive Video Diffusion](https://mlsanity.com/paper/2506.08009/) (2025)
- [LTX-Video: Realtime Video Latent Diffusion](https://mlsanity.com/paper/2501.00103/) (2024)
- [CameraCtrl: Enabling Camera Control for Text-to-Video Generation](https://mlsanity.com/paper/2404.02101/) (2024)
- [From Slow Bidirectional to Fast Autoregressive Video Diffusion Models](https://mlsanity.com/paper/2412.07772/) (2024)
- [InternVideo2: Scaling Foundation Models for Multimodal Video Understanding](https://mlsanity.com/paper/2403.15377/) (2024)
- [MAGI-1: Autoregressive Video Generation at Scale](https://mlsanity.com/paper/2505.13211/) (2025)
- [Gemma 4 Technical Report](https://mlsanity.com/paper/2607.02770/) (2026)
- [StreamingT2V: Consistent, Dynamic, and Extendable Long Video Generation from Text](https://mlsanity.com/paper/2403.14773/) (2024)
- [Self-Forcing++: Towards Minute-Scale High-Quality Video Generation](https://mlsanity.com/paper/2510.02283/) (2025)
- [Matrix-game 2.0: An open-source real-time and streaming interactive world model](https://mlsanity.com/paper/2508.13009/) (2025)
- [Causal Forcing: Autoregressive Diffusion Distillation Done Right for High-Quality Real-Time Interactive Video Generation](https://mlsanity.com/paper/2602.02214/) (2026)
- [WorldPlay: Towards Long-Term Geometric Consistency for Real-Time Interactive World Modeling](https://mlsanity.com/paper/2512.14614/) (2025)
- [WorldMem: Long-term Consistent World Simulation with Memory](https://mlsanity.com/paper/2504.12369/) (2025)
- [Context as Memory: Scene-Consistent Interactive Long Video Generation with Memory Retrieval](https://mlsanity.com/paper/2506.03141/) (2025)
- [Advancing Open-source World Models](https://mlsanity.com/paper/2601.20540/) (2026)
- [GameFactory: Creating New Games with Generative Interactive Videos](https://mlsanity.com/paper/2501.08325/) (2025)
- [GameGen-X: Interactive Open-world Game Video Generation](https://mlsanity.com/paper/2411.00769/) (2024)
- [VMem: Consistent Interactive Video Scene Generation with Surfel-Indexed View Memory](https://mlsanity.com/paper/2506.18903/) (2025)
- [Boximator: Generating Rich and Controllable Motions for Video Synthesis](https://mlsanity.com/paper/2402.01566/) (2024)

## Built on by (most cited first, 9 of 9)

- [SolarWM: Open Data and Scalable Training for Long-Horizon Video World Models](https://mlsanity.com/paper/2609.02886/) (2026)
- [WorldCrafter: Consistent Video World Model with Implicit 3D-aware Memory](https://mlsanity.com/paper/2609.24984/) (2026)
- [World in World: Explore the World with World Models](https://mlsanity.com/paper/2609.11548/) (2026)
- [Code Plans, Diffusion Renders: Open-Ended Generative World Modeling](https://mlsanity.com/paper/2609.26458/) (2026)
- [OPIS: An Input-Grounded Benchmark for Multi-Object Memory in Video World Models](https://mlsanity.com/paper/2609.35052/) (2026)
- [LongTake: Learning to Sustain Dynamics in Long-Horizon Video Generation](https://mlsanity.com/paper/2609.38562/) (2026)
- [LOCI: Spatial Linear Memory for Streaming World Models](https://mlsanity.com/paper/2609.40222/) (2026)
- [World Models' Last Exam in Physics](https://mlsanity.com/paper/2610.08791/) (2026)
- [FrameFold: Response-Guided KV Cache Consolidation for Autoregressive Long Video Generation](https://mlsanity.com/paper/2610.14568/) (2026)

## Abstract (arXiv)

Interactive world models extend video generation from offline clip synthesis toward persistent simulation of interactive virtual worlds, enabling applications in games, robotics, embodied agents, and XR. Achieving stable long-horizon interactive generation, however, remains challenging, as the model must simultaneously preserve scene geometry, dynamic consistency, and camera control while supporting real-time autoregressive generation. Building upon Matrix-Game 3.0, we present Matrix-Game 3.5, as shown in Figure 1, which advances real-time interactive world generation toward geometry-aware and long-horizon consistent simulation through three key improvements. First, we propose a unified geometry-aware memory framework, whose patch-memory and tiled-PRoPE components introduce no additional learnable parameters, combining explicit 3D patch retrieval with projective camera conditioning to enable geometry-consistent camera control and faithful long-horizon scene recall. Second, we introduce a static-dynamic disentangled world representation that separately models static scene geometry and dynamic subjects, preserving both geometric consistency and subject identity throughout long-horizon generation. Third, we develop a two-stage progressive real-time distillation framework that converts a bidirectional diffusion model into a few-step causal generator through Perceptual Flow Matching and curriculum based Self-Rollout DMD, enabling minute-long real-time interactive generation. Extensive experiments demonstrate that, with a unified training corpus spanning Unreal simulation environments, open-world games, and internet videos, MatrixGame 3.5 achieves strong performance in long-horizon scene recall, precise camera control, subject consistency, prompt-driven world generation, and stable real-time open-world interaction.