Gaming stocks fall after Meta unveils AI game-building tools

Investing.com -- Unity Software Inc. (NYSE: U) fell 5%, while Roblox Corporation and AppLovin each dropped 1% after Meta announced new AI-powered game creation tools at its Connect conference.

Meta introduced Horizon Create and Horizon Studio, two tools that enable users to build 2D or 3D mobile games directly from their phones or web browsers using text prompts. The tools are built on the Meta Horizon Engine and allow creators to describe games in natural language, which the system then translates into playable experiences.

Horizon Create is a mobile app that lets users generate games on their phones, while Horizon Studio offers browser-based creation with more detailed controls. Both tools support seamless transfer of projects between platforms, allowing creators to switch between mobile and web development without losing progress.

Games created through these tools will be distributed across Facebook, Instagram, and Horizon platforms. Meta stated that discovery will be driven by engagement metrics, with games that retain players earning more reach. The company plans to offer monetization through in-game purchases and the Meta Horizon Creator Fund.

All generated content passes through Meta’s content safety systems before reaching players, and published games receive automated age ratings. Early access is rolling out gradually, with broader availability planned for the near future.

The announcement represents Meta’s entry into simplified game development, a space where Unity, Roblox, and AppLovin currently operate. Unity provides game development software, Roblox offers a platform for user-generated games, and AppLovin focuses on mobile game marketing and monetization.

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