Roblox shares fall as Google and Unity launch AI-powered game creation platform
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Investing.com — Roblox Corp shares fell as much as 8% in pre-market trading Wednesday and were recently down about 5% after Google and Unity Software Inc announced a partnership to build an AI-powered game creation platform.
The companies said in a press release they will develop an integrated gaming platform featuring AI-powered tools that allow users to create games without coding experience. The new platform represents potential competition for Roblox in the user-generated gaming market.
Google launched an experimental platform called Playground, now available to users aged 18 and older. The platform lets users generate and customize playable games using natural language prompts.
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The companies plan to introduce Unity Spark later this year, a product built on Playground that will offer advanced capabilities including professional-level mechanics, high-fidelity 3D features, and access to the Unity runtime.
The platform will integrate with Google Play Games, providing users with leaderboards, multiplayer matchmaking, and community features. Public game creations on Playground will include social elements such as sharing and liking.
Google said it will promote creator content across its network to highlight games made through the platform. Unity provides game development tools across mobile, PC, console, and extended reality platforms.
On September 28, Jefferies downgraded Roblox to Underperform from Hold and maintained its $38 price target, implying 18% downside. Analyst James Heaney said the stock’s 30% rally since second-quarter results reflects overly optimistic expectations for bookings over the next 12 months.
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