Roblox cut its annual bookings forecast on Thursday, fanning concerns about a slump in the videogame industry and sending its shares down 23 percent to mark their worst day in more than two years.

The move signaled that people were dialing back on spending within Roblox’s video-gaming platform amid an uncertain economic outlook and elevated inflation. Video game publisher Electronic Arts also gave a weak revenue forecast earlier this week.

Roblox expects full-year bookings – an indicator of future revenue – to be between $4 billion and $4.10 billion, down from its earlier view of $4.14 billion to $4.28 billion.

Its second-quarter forecast for bookings was also below LSEG estimates.

Roblox was conservative with its quarterly view as the Easter holiday, a period of high engagement on its platform, was during the first quarter this year compared with the second quarter in 2023, Finance chief Michael Guthrie said.

But even with the boost from Easter, its bookings grew 19 percent in the first quarter – the slowest pace in more than a year.

Average daily active users increased 17 percent to 77.7 million – the lowest growth rate since going public in 2021. The number of hours gamers aged 13 or more spent on Roblox’s platform grew 19%, the lowest growth rate in about two years.

“That’s not unusual,” Guthrie said. The company was adding a lot of older gamers who take a while to get settled and spend more time on the platform, he said.

The slowdown also mirrors a broader weakness in engagement for videogames, which has forced companies including Sony Group and Microsoft to lay off hundreds of employees and shut studios this year.