Unity Files Game Software Developer For IPOs As Industry Booms

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As a game development platform, the company has benefited from the current boom in games. People are expected to spend approximately $ 159.3 billion on video games globally, a 9.3% increase from last year, which was fueled by stay-at-home orders during the pandemic.

Unity had two billion monthly active users as of June 30 and 1.5 million creators using its platform, according to the filing. More than half of console, mobile and PC games use its technology, according to the company.

While the majority of its use is in the gaming space, other industries including medical and automotive manufacturing have been able to take advantage of its technology. The company said it has 716 customers paying over $ 100,000 for its revenue, of which 60 were not in the gaming space.

However, that doesn’t mean Unity has made a profit yet. While he cut his losses in 2020, he lost $ 54.1 million on income of $ 351.3 million in the first half of the year. These numbers are a marked improvement over 2019, where it lost $ 163.2 million on revenue of $ 541.8 million, as well as 2018 where it recorded a loss of $ 131.6 million. on revenues of $ 380.7 million.

There are also issues ahead as the company relies on games offered by third-party marketplaces such as Google Play Store and Apple App Store. Unity’s rival Epic, which runs the game development platform Unreal Engine, is currently suing Apple for alleged violations of antitrust laws. The tech giant has removed Epic’s Fortnite game from its store because it claims Epic was violating its policies. Apple requires 30% payment for all in-app purchases or subscriptions, but Epic has sold Fortnite game packs directly to consumers without giving Apple a discount.

Unity addressed the possibility of encountering this conflict in its S-1 when it wrote, “If we or our customers were to breach, or if an operating system platform vendor or app store believes that we or our customers have violated, its terms of use or policies, that operating system platform provider or application store could limit or interrupt our access or that of our customers to its platform or its store.”

Unity also has a robust advertising platform, but could also run into issues when Apple restricts user data collection called IDFA on iOS14. The IDFA is a unique device identification number that allows brands and agencies to track the effectiveness of advertisements and target the right users based on activity and location. Without this information, it will be more difficult for advertising platforms to find the best candidates for marketing materials.

Still, with gaming on the rise, the future could be rosy for Unity. Newzoo believes the industry could be worth up to $ 200.8 billion by 2023.


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