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GameMakers
Unity Software (U): Huge Problems, Negative Outlook, Big Changes Required
Oct 3, 2023
This podcast discusses Unity Software's business, financials, pricing changes, and future outlook. It explores the impact of recent pricing changes, compares Unity's management to Twitter's inefficiency, and emphasizes the need for change and management realignment in public gaming companies.
01:09:07
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Quick takeaways
- Unity's business is divided into two segments: create and grow, with the majority of revenue coming from the gaming industry.
- The recent pricing changes by Unity have sparked backlash from developers, raising concerns about customer value and long-term sustainability.
Deep dives
Unity's Business Overview
Unity's business is comprised of two main segments: create and grow. The create segment offers a suite of developer tools and services, with the primary component being the Unity Engine. It also includes various tools for distributed teams, visual communication, version control, multiplayer solutions, game server hosting, and data analytics. 70% of the revenue from the create segment comes from the gaming industry. On the other hand, the grow segment focuses on ad-based products and game publishing. It includes ad mediation, ad networks, ad exchanges, and the level play ad mediation product. The pricing changes and revenue growth are key considerations for Unity's future.
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