World Reasoning Arena

World models (WMs) are intended to serve as internal simulators of the real world that enable agents to understand, anticipate, and act upon complex environments. Existing WM benchmarks remain narrowly focused on next-state prediction and visual fidelity, overlooking the richer simulation capabilities required for intelligent behavior. To address this gap, we introduce WR-Arena, a comprehensive benchmark for evaluating WMs along three fundamental dimensions of next world simulation: (i) Action Simulation Fidelity, the ability to interpret and follow semantically meaningful, multi-step instructions and generate diverse counterfactual rollouts; (ii) Long-horizon Forecast, the ability to sustain accurate, coherent, and physically plausible simulations across extended interactions; and (iii) Simulative Reasoning and Planning, the ability to support goal-directed reasoning by simulating, comparing, and selecting among alternative futures in both structured and open-ended environments. We build a task taxonomy and curate diverse datasets designed to probe these capabilities, moving beyond single-turn and perceptual evaluations. Through extensive experiments with state-of-the-art WMs, our results expose a substantial gap between current models and human-level hypothetical reasoning, and establish WR-Arena as both a diagnostic tool and a guideline for advancing next-generation world models capable of robust understanding, forecasting, and purposeful action. The code is available at https://github.com/MBZUAI-IFM/WR-Arena.

PAN: A World Model for General, Interactable, and Long-Horizon World Simulation

A world model enables an intelligent agent to imagine, predict, and reason about how the world evolves in response to its actions, and accordingly to plan and strategize. While recent video generation models produce realistic visual sequences, they typically operate in the prompt-to-full-video manner without causal control, interactivity, or long-horizon consistency required for purposeful reasoning. Existing world modeling efforts, on the other hand, often focus on restricted domains (e.g., physical, game, or 3D-scene dynamics) with limited depth and controllability, and struggle to generalize across diverse environments and interaction formats. In this work, we introduce PAN, a general, interactable, and long-horizon world model that predicts future world states through high-quality video simulation conditioned on history and natural language actions. PAN employs the Generative Latent Prediction (GLP) architecture that combines an autoregressive latent dynamics backbone based on a large language model (LLM), which grounds simulation in extensive text-based knowledge and enables conditioning on language-specified actions, with a video diffusion decoder that reconstructs perceptually detailed and temporally coherent visual observations, to achieve a unification between latent space reasoning (imagination) and realizable world dynamics (reality). Trained on large-scale video-action pairs spanning diverse domains, PAN supports open-domain, action-conditioned simulation with coherent, long-term dynamics. Extensive experiments show that PAN achieves strong performance in action-conditioned world simulation, long-horizon forecasting, and simulative reasoning compared to other video generators and world models, taking a step towards general world models that enable predictive simulation of future world states for reasoning and acting.