Video world models are increasingly used as simulators, yet visual fidelity alone does not show that a model maintains the hidden state of the world. We examine this gap with an action-conditioned video Shell Game, a visual analog of $S_5$ state tracking that decouples visual rendering from compositing the hidden state underneath. Bidirectional and autoregressive Transformers, Mamba, and linear attention restricted to nonnegative transition eigenvalues all fit the training horizon of 5 swaps and then fall toward chance on longer swap chains (extrapolation) while still rendering plausible video with additional denoising steps providing no benefit. The pixel-based diffusion target never supervises the unseen hidden state, so the generated frames cannot carry it and the state has to live inside the architecture rather than in the tokens. For a Transformer, that architectural state is only an append-only KV cache, so the model has to re-derive the hidden arrangement from the whole history at every chunk. We find two mechanisms that do extrapolate, and both carry a state across chunks and revise it in place. Linear attention succeeds once its transition eigenvalues may be negative, and TTT with a nonlinear fast weight succeeds by updating the feature map through which it reads its own state. We further examine harder cases in dynamic world exploration tasks, and discuss the broader implications for building stateful video world models.
A striking feature of the human visual system is that it ingests visual information through a series of local foveated glimpses, rather than a single global computation. This makes human vision distinctly different from most popular computer vision models in use today, which input images globally and in a single shot. A natural question therefore is whether local, sequential vision models may provide any fundamental computational benefits in addition to being biologically more plausible than global models. In this work, we investigate this question from the perspective of visual state tracking and length generalization. Inspired by recent studies of length generalization in language models, we study the behavior of vision models trained on simple vision tasks that require the aggregation of local information across an image. Our experiments reveal that, similar to language models, vision models can learn to exploit global shortcuts and thereby fail to generalize over task length or complexity. We also show that recurrent vision policies based on strictly local perception can mitigate these failures, thereby allowing models to generalize on these tasks. Our results show that local attention may be an essential overlooked requirement for robust compositional generalization.