# StateCraft: Augmenting Video World Models with Abstract-State Reasoning

arXiv: https://arxiv.org/abs/2610.19795 · HTML: https://mlsanity.com/paper/2610.19795/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Video-generation world models and simulators, one of 11 directions in World models.
- Builds on 60 of its 75 references that are in the map.
- First posted on arXiv 14 Oct 2026.

## Placed in

- World models / [Video-generation world models and simulators](https://mlsanity.com/wm/video-generation-world-models-and-simulators/)
- LLM reasoning / [Spatial and embodied reasoning](https://mlsanity.com/lr/spatial-and-embodied-reasoning/)

## Builds on (most cited first, 30 of 60)

- [LoRA: Low-Rank Adaptation of Large Language Models](https://mlsanity.com/paper/2106.09685/) (2021)
- [Chain-of-Thought Prompting Elicits Reasoning in Large Language Models](https://mlsanity.com/paper/2201.11903/) (2022)
- [Denoising Diffusion Implicit Models](https://mlsanity.com/paper/2010.02502/) (2020)
- [ReAct: Synergizing Reasoning and Acting in Language Models](https://mlsanity.com/paper/2210.03629/) (2022)
- [BLIP-2: Bootstrapping Language-Image Pre-training with Frozen Image Encoders and Large Language Models](https://mlsanity.com/paper/2301.12597/) (2023)
- [Classifier-Free Diffusion Guidance](https://mlsanity.com/paper/2207.12598/) (2022)
- [Self-Consistency Improves Chain of Thought Reasoning in Language Models](https://mlsanity.com/paper/2203.11171/) (2022)
- [RoFormer: Enhanced Transformer with Rotary Position Embedding](https://mlsanity.com/paper/2104.09864/) (2021)
- [Qwen2-VL: Enhancing Vision-Language Model's Perception of the World at Any Resolution](https://mlsanity.com/paper/2409.12191/) (2024)
- [Tree of Thoughts: Deliberate Problem Solving with Large Language Models](https://mlsanity.com/paper/2305.10601/) (2023)
- [FiLM: Visual Reasoning with a General Conditioning Layer](https://mlsanity.com/paper/1709.07871/) (2017)
- [PaLM-E: An Embodied Multimodal Language Model](https://mlsanity.com/paper/2303.03378/) (2023)
- [Least-to-Most Prompting Enables Complex Reasoning in Large Language Models](https://mlsanity.com/paper/2205.10625/) (2022)
- [Qwen3 Embedding: Advancing Text Embedding and Reranking Through Foundation Models](https://mlsanity.com/paper/2506.05176/) (2025)
- [Mind2Web: Towards a Generalist Agent for the Web](https://mlsanity.com/paper/2306.06070/) (2023)
- [OSWorld: Benchmarking Multimodal Agents for Open-Ended Tasks in Real Computer Environments](https://mlsanity.com/paper/2404.07972/) (2024)
- [Reasoning with Language Model is Planning with World Model](https://mlsanity.com/paper/2305.14992/) (2023)
- [SpatialVLM: Endowing Vision-Language Models with Spatial Reasoning Capabilities](https://mlsanity.com/paper/2401.12168/) (2024)
- [GAIA-1: A Generative World Model for Autonomous Driving](https://mlsanity.com/paper/2309.17080/) (2023)
- [AndroidWorld: A Dynamic Benchmarking Environment for Autonomous Agents](https://mlsanity.com/paper/2405.14573/) (2024)
- [Learning Interactive Real-World Simulators](https://mlsanity.com/paper/2310.06114/) (2023)
- [Emergent World Representations: Exploring a Sequence Model Trained on a Synthetic Task](https://mlsanity.com/paper/2210.13382/) (2022)
- [Simple diffusion: End-to-end diffusion for high resolution images](https://mlsanity.com/paper/2301.11093/) (2023)
- [Vista: A Generalizable Driving World Model with High Fidelity and Versatile Controllability](https://mlsanity.com/paper/2405.17398/) (2024)
- [Understanding Diffusion Objectives as the ELBO with Simple Data Augmentation](https://mlsanity.com/paper/2303.00848/) (2023)
- [Diffusion Models Are Real-Time Game Engines](https://mlsanity.com/paper/2408.14837/) (2024)
- [Matryoshka Representation Learning](https://mlsanity.com/paper/2205.13147/) (2022)
- [DriveDreamer: Towards Real-world-driven World Models for Autonomous Driving](https://mlsanity.com/paper/2309.09777/) (2023)
- [Emergent Analogical Reasoning in Large Language Models](https://mlsanity.com/paper/2212.09196/) (2022)
- [Windows Agent Arena: Evaluating Multi-Modal OS Agents at Scale](https://mlsanity.com/paper/2409.08264/) (2024)

## Abstract (arXiv)

Video world models aim to simulate complex environments with realistic appearance and dynamics. Maintaining consistency over long interactions requires tracking past actions and understanding how those actions affect the environment. Video world models can only generate partial observations of the entire world at a time. Remembering past observations alone may not be sufficient in every scenario, as they may no longer reflect the world after a sequence of actions. We introduce a paradigm that decouples a persistent, updatable abstract state from the visual state. The abstract state keeps track of the entities' changes as the world evolves, and is used to condition the visual state, which represents the current view. We propose StateCraft, a novel architecture that pairs a language model with a video diffusion model to evolve the dynamic world. We evaluate our approach on generative interfaces, which pose a substantial challenge because a single action may change parts of the state that are not currently visible. To support training and evaluation, we develop a data collection pipeline that produces informative, densely annotated trajectories at scale without human or agent supervision, together with a benchmark measuring generation quality, memory, and controllability. On this benchmark, our approach improves surpasses the state-of-the-art baselines. We demonstrate that StateCraft maintains high self-consistency and strong generation quality over long trajectories. Because the abstract state is explicit, it can be edited directly, and generation follows edits to states never observed in the data. Finally, a proof-of-concept 3D experiment, in which actions change the illumination of an unobserved room, shows that the paradigm can also be applied to spatial environments. Project page: https://insait-institute.github.io/StateCraft/.