ACWM-Phys: Investigating Generalized Physical Interaction in Action-Conditioned Video World Models

Action-conditioned world models (ACWMs) have shown strong promise for video prediction and decision-making. However, existing benchmarks are largely restricted to egocentric navigation or narrow, task-specific robotics datasets, offering only limited coverage of the rich physical interactions required for generalized world understanding. We introduce ACWM-Phys, a new benchmark for evaluating action-conditioned prediction under diverse physical dynamics in a clean, controllable simulation environment with a carefully designed action space. ACWM-Phys contains training and evaluation data spanning rigid-body dynamics, kinematics, deformable-object interactions, and particle dynamics. To evaluate both interpolation and generalization, we design in-distribution and out-of-distribution protocols with controlled shifts in interaction patterns or scene configurations. By building the benchmark in a fully controllable simulator, ACWM-Phys enables precise data collection, reproducible evaluation, and systematic analysis of model capabilities for physically grounded world modeling. Through systematic experiments on ACWM-DiT, we find that OoD generalization depends not only on the physical regime but also on effective task complexity: models generalize well on visually simple, low-dimensional interactions with clear geometric structure, but suffer larger drops on deformable contacts, high-dimensional control, and complex articulated motion. This suggests that the model still relies heavily on visual appearance patterns instead of fully learning the underlying physics. Ablations show that cross-attention improves high-dimensional action conditioning, causal VAEs outperform frame-wise encoders, and larger action spaces are harder to model but can improve generalization by providing richer control signals. These findings guide the design of physically grounded world models.