Meta game AI reveal sends Unity shares down 6%

  • Meta unveiled Horizon Create and Horizon Studio for AI-assisted game development.
  • Unity shares fell as much as 6% to approximately $41.42 on Thursday.
  • Meta said early access will expand incrementally, with broader availability expected in coming months.

Meta Platforms unveiled Horizon Create and Horizon Studio at the second day of its Connect conference, introducing AI-powered tools that turn verbal or text-based game concepts into functional 2D and 3D games. Horizon Create is designed for mobile devices, while Horizon Studio targets desktop browsers, with early access available through a waiting list and broader availability expected in coming months. Shares of Unity Software fell as much as 6% to about $41.42, while Take-Two Interactive dropped 1.6% to $202.98, Roblox declined 0.3% to $48.83 and AppLovin retreated roughly 1%. Analysts said the market reaction may be excessive because the platforms have not been independently tested and were demonstrated in controlled settings. The announcement revived concerns seen on January 30, when Alphabet's Project Genie triggered declines in the same stocks. Meta said Horizon-created games will be distributed across Facebook, Instagram and Horizon, ranked by engagement, and monetized through in-game transactions and a Creator Fund. Content must pass Meta's safety protocols and automated age classification before publication.

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