I kinda feel bad for Unity. The company is in a bad place finacially. They're burning almost $1 billion a year and they have no good solutions to this. Either they try to increase pricing and piss off their customers, or they cut costs (which they've been doing with mass layoffs) and risk losing ground to other game engineers like Unreal.
For years the only thing really holding the company a float was their valuation. So long as investors were willing to give them money for growth and future profits they could continue to fund their loses. But now their growth is slowing and investors are less willing to pay up for growth generally what does Unity do?
I've felt for a while that they'd be a likely victim of this most recent tech rut and that seems to be playing out. They have no moat, slowing growth and are burning huge amounts of cash. Unless the macro changes in their favour it's hard to how they get out of this and stay on top.
For years the only thing really holding the company a float was their valuation. So long as investors were willing to give them money for growth and future profits they could continue to fund their loses. But now their growth is slowing and investors are less willing to pay up for growth generally what does Unity do?
I've felt for a while that they'd be a likely victim of this most recent tech rut and that seems to be playing out. They have no moat, slowing growth and are burning huge amounts of cash. Unless the macro changes in their favour it's hard to how they get out of this and stay on top.