Roblox Seen With Risk from AI Game Creation Platforms -- Market Talk

Dow Jones02-02 23:18

1018 ET - The advent of AI-driven video game creation, including the recent release of Google's Project Genie, creates near-term and structural risk for Roblox, Benchmark's Mike Hickey writes in a note. "While AI-native creation aligns conceptually with Roblox's strategy of lowering creation friction, it also accelerates content saturation, increases competition for developer attention, and raises the longer-term possibility of AI-first platforms emerging as competing game ecosystems," Hickey says. Roblox's existing AI capabilities might not be enough to offset the appeal of a purpose-build, AI creation platforms with more autonomy and faster iteration among other things, Hickey says. The company may also need to continue raising developer payouts to retain talent, he adds, extending the recent trend of higher development costs and reinforcing margin pressure. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

February 02, 2026 10:18 ET (15:18 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment