https://www.sec.gov/Archives/edgar/data/1810806/000119312520227862/d908875ds1.htm
Inevitable.
Yup they are losing money and have done 8 funding rounds.
Now big question for us is what changes are they going to make so they stop losing money?
To long to read the whole IPO
And by the way, not having a net profit is a good thing for a company, means it will pay less taxes.
Investing in Unity stock right now would be very wise. I see several huge corporations investing in Unity, like Facebook, Valve, and Tencent. I believe the initial price is going to be very low (less than $30 a share), and in only a few years, the price is going to go up 300% and more.
If anything, I see Unity offering preferential treatment towards the big investors. It’s also interesting how their online services are providing most of the revenue. So I see Unity continuing to invest heavily into service based subscriptions, integrating them more into the engine itself.
Hopefully this means we’ll actually have good online multiplayer frameworks and netcode.
2 Likes
Unity made a net loss every year of around 140-160 million dollars.
This company either finds investment in an IPO or they are bankrupt.
They build up more than 500 mil of debt.
Another interesting point, 74% of all income Unity has comes from their top 600 customers that each are paying more than 100.000 dollars per year.
Meaning all the other stuff, like plus, pro subscriptions or asset store is the other 26%.
Note that they spend 250 mil on research and development,
and a whopping 174 million on Sales and Marketing
and 143 Million on general/administration.
So this is a sales and manager company, not a tech company any more.
Hear it from Jobs of how that will go:
Good luck guys… you are going to need it.
16 Likes
Yea I like that speech from Steve jobs, The current Unity CEO also worked for PesiCo.
Lets just hope it will be fine, Apple turned out to be quite successful after all.
2 Likes
at this stage (after reading those numbers and watching that Jobs video), i’d just hope that Microsoft would buy Unity…
also these new profit ideas do not sound too exciting,
6 Likes
Microsoft ? It would not be my choice, I would prefer if Softbank or some other non tech financial institution, at least it would stay independent. But better not any takeovers.
What are the chances of google buying out Unity
Two of my worst fears, adobe or autodesk buying unity shares until they own a majority and take over.
Microsoft won’t be any better, and google for sure not. Apple would also not know what to do with it.
Best if we all have a little bit of shares
5 Likes
Disclaimer: I’m repeating repeating something I said in another thread some months ago:
I’d like to see Unity bought by Microsoft. If that happened, a number of things could follow:
- It could become a first class citizen of the .NET ecosystem (.NET 5 yay!)
- It could become part of the Xbox strategy (More love for high-end features!)
- It could get pushed internally to the Xbox game studios family (Dog-fooding yay!)
- It could get an overhauled Package manager & Collaborate (They have nuGet, and own Github and NPM now)
- Havok could become a core part of the engine
- It would have the backing to focus on a strategic set of markets (games, AR) and stop chasing revenue from every possible place
- A lot of online infrastructure be consolidated under the umbrella of Azure.
- It could lead to secondary companies bought by unity to become part of the base offering or even fuse with similarly-focused companies bought by Microsoft.
- Maybe, and only maybe, there could be a change in the licensing model an or/source access
If I go even further, maybe one day the whole DOTS thing can give back to the .NET stack. Maybe some new construct in C# to better support the so-called HPC# ? Maybe Burst becomes part of Roslyn (or whatever that part of the toolchain is called)?
Now I know some people still wrinkle their faces when they hear the MICRO$OFT name, but come on, it’s not a bad company at all these days. I concede there could be some possible drawbacks, such as relegating OpenGL/Vulkan/Apple ecosystem, but I doubt that would be the case. What I mentioned before is more than enough for Unity to become part of the Microsoft ecosystem and “lure” devs into the rest of their offerings. I don’t think they’d risk angering people by cutting cords with “the competition”.
At the end of the day i think it could be a turn for the best.
19 Likes
would anti trust issues stop microsoft or google form buying unity
1 Like
Microsoft would be bad for the whole multiplatform export options
apple google playstation nintendo would be the fist to be removed as export options
1 Like
I would think not, neither of them have a major influence in the game dev/3D content markets
I’d agree with that if we were taking about 90’s-early 00’s Microsoft. It’s not like that nowadays.
They’re embracing open source like never before, their biggest money maker (azure) works mostly on Linux, and they’re actively integrating their ecosystem into other systems (vs code for Mac, Ms launcher on Android, new Edge is built on chromium)
On the gaming side, they’re focusing on PC like never before, have been releasing their games on steam, and many of their games like Minecraft and the Ori franchise are available on PlayStation and Switch
12 Likes
I’ll personally buy most of Unity and force them to focus on their best features while dropping everything else.
Starting 2021, Unity will no longer have a game engine offering and will completely focus on providing versioning services via Collaborate.
2 Likes
I’d love it if Microsoft picked up Unity. But I doubt that would happen. What’s most likely is a bunch of companies will get small stakes in Unity, and UT will focus more on mobile (possibly even more enterprise mobile, like enterprise AR and the like) and ad revenue, and less on PC gaming since it seems to just be a cost for them without a great deal of profit.
2 Likes
After IPO is done, I would expect Unity to increase monetization of its free tier users due to shareholder pressure. I foresee more paid add-ons, and incentives will be added to get more people onto Unity Plus.