The sharp downward pressure on Unity Software Inc. shares stems primarily from competitive disruptions announced at Meta’s annual Connect event. Meta unveiled new generative artificial intelligence game-creation tools, Horizon Create and Horizon Studio, which enable users to build interactive two-dimensional and three-dimensional experiences through natural language text prompts. By drastically lowering the technical barrier to entry for content creation, Meta’s entry into simplified game development tools presents a potential competitive threat to Unity’s core engine ecosystem. Investors reacted with heightened concern that accessible, AI-native creation suites from mega-cap tech companies could erode Unity’s developer base and dilute…