Unity Software stock fell by more than 22%. The decline followed Google's announcement of 'Project Genie'.
Google designed the new AI tool to create playable, interactive virtual worlds. It uses simple text and image prompts. This positions Project Genie as a significant competitor to Unity's core game engine and development platform.
The news impacted other related stocks across the gaming and software industries. The immediate market sell-off reflected investor fears that Google's entry could disrupt Unity's market position and future growth prospects.
The sharp decline underscores concerns about increased competition and a potential shift in the 3D content creation landscape. Unity has long dominated this domain.