New York, Jan 30, 2026, 19:00 (EST) — After-hours
- Roblox shares tumbled roughly 13% on Friday, closing close to $66.
- A new AI world-building tool from Google triggered a selloff in videogame stocks.
- Dutch regulators have launched an EU-wide investigation into risks to minors; earnings are scheduled for Feb. 5.
Roblox shares (RBLX) dropped roughly 13% on Friday, closing near $65.76 in after-hours trading, following the 4 p.m. ET market close. The stock opened at $74.52 but slid to an intraday low of $64.55.
The decline refocused scrutiny on the speed with which investors are adjusting valuations of videogame platforms, as generative AI shifts from research demos to real-world applications.
Regulators and parents are turning up the heat on online spaces crowded with kids, and Roblox finds itself caught in the crossfire. This blend—disruption risk on one front, compliance challenges on the other—makes it tough to manage exposure.
Videogame stocks tumbled after Alphabet’s Google unveiled Project Genie, an AI model that generates interactive digital worlds from simple prompts, sparking concerns over potential disruption in game development. Take-Two Interactive plunged 10%, while Unity Software slid 21%. Joost van Dreunen of NYU Stern School of Business commented, “We’ll see a real transformation in development and output once AI-based design starts creating experiences that are uniquely its own.” (Reuters)
Google’s blog introduced Project Genie as an experimental prototype exclusively for U.S. Google AI Ultra subscribers, driven by its “Genie 3” world model. The company explained that “Genie 3 generates the path ahead in real time as you move and interact with the world,” adding that each generation is limited to 60 seconds. (Blog)
The Netherlands’ consumer watchdog, the Authority for Consumers and Markets (ACM), has opened an investigation into Roblox. The probe targets potential risks to underage users under the EU’s Digital Services Act, the bloc’s regulatory framework for online platform safety. Roblox said it’s “strongly committed to complying with the EU Digital Services Act” and highlighted a plan from last November to roll out facial recognition-based age verification to restrict communication between kids and adults. (Reuters)
Roblox ramped up its safety efforts this week. On Thursday, Matt Kaufman announced the company will now automatically scan avatars for policy violations every time they’re updated, resetting users to a default avatar if any issues pop up. Amanda Third from Western Sydney University weighed in, saying, “Cross-sector collaboration is essential if we want to build online environments that uphold children’s rights.” (Roblox)
The watchdog indicated the investigation could stretch to about a year and might result in a binding order, fine, or penalty if violations are uncovered, according to Al Jazeera. Earlier, the regulator fined Fortnite creator Epic Games 1.1 million euros in 2024 for allegedly pressuring children into making purchases. (Al Jazeera)
Project Genie remains in the prototype stage, leaving uncertain if it will change consumer spending habits or just accelerate production within current tools. The Dutch review might drag on, potentially resulting in anything from a light warning to stricter interventions.
Roblox is set to release its fourth-quarter and full-year 2025 earnings after the U.S. market closes on Feb. 5, followed by a conference call at 4:30 p.m. ET. Investors will focus on bookings, the company’s key metric for user spending, as well as any updates on safety and compliance expenses. (Roblox)
