# OTOY Studio v3.38.0 changelog

Published September 4, 2026.

Toast notifications now appear when generations complete or fail, and recordings save with the correct file extensions. The video compositor gains image-to-video and audio generation, while a new drag-snapping preference helps align nodes on the canvas.

## Toast notifications for generation events

After a generation job finishes, a brief toast notification confirms the outcome. Successful runs show the model name followed by "completed," while failures show the model name and the specific error. If you rename a layer, the toast uses your custom label instead of the model's default name, keeping the feedback personalized to your workflow.

## Correct file extensions for WebM recordings

Realtime video recordings now download with the correct `.webm` extension instead of the previous `.mp4` mismatch. This resolves issues where players like QuickTime and VLC would refuse to open WebM-encoded files that were incorrectly labeled. All downloads, including videos, images, and audio previews, inherit this fix for accurate file typing.

## AI generation in the compositor

The video compositor now supports generating images, videos, and audio directly within the editor. A new mode toggle filters available models by the type of media you want to create. 

Generate videos using multi-shot editors for models that support sequential prompting, with individual prompts and durations per shot. Input slots for start frames, reference images, and audio layers integrate the LayerPicker for easy media selection. A new "Override Cut Format" toggle lets you choose between using the project's dimensions or the model's native resolution controls.

## Snap nodes to alignment guides

A new "Snap to nearby nodes" preference in the Canvas settings (enabled by default) adds magnetic alignment when dragging nodes. As you move a node or a multi-node selection, light-blue guide lines appear when the selection aligns with a nearby node's edges or center on either axis. The feature works with groups and respects grid snapping when the Shift key is held.

## Quality of life

- Playhead on the video timeline turns red during playback.
- Time format display on the timeline is now a click-to-cycle button.
- Inspector controls use a unified height, with blend mode and matte channel selectors replacing native dropdowns.
- Generate modal features a redesigned model picker with provider icons and a scrollable list.
- Seed input in the Generate modal displays a dice icon and an "Auto" toggle pill.