Earlier this week, Unity Software filed its intentions to offer an initial public offering with the SEC.
As a game development platform, the company has benefitted from the current boom in gaming. People are expected to spend an estimated $159.3 billion on video games globally, a 9.3 percent 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 utilize its technology, per the company.
While the majority of its use is in the gaming space, other industries, including the medical field and automotive manufacturing, have been able to take advantage of its technology. The company said it has 716 clients paying over $100,000 towards its revenue, 60 of which were not in the gaming space.
However, it doesn't mean Unity has turned a profit yet. While it narrowed its losses in 2020, it lost $54.1 million on revenue of $351.3 million during the first half of the year. Those figures are a marked improvement from 2019, when it lost $163.2 million on revenue of $541.8 million, as well as 2018 when it posted a loss of $131.6 million on revenue of $380.7 million.
There's also trouble looming ahead because the company relies on games being put out by third-party marketplaces like the Google Play Store and Apple App Store. Unity rival Epic, which runs the Unreal Engine game development platform, is currently suing Apple over alleged antitrust violations. The tech giant removed Epic's game Fortnite from its store because it claims Epic was in violation of its policies. Apple requires a 30 percent payment for any in-app purchases or subscriptions, but Epic sold Fortnite game packs directly to consumers without giving Apple a cut.
Unity addressed the potential to run into that conflict in its S-1 when it wrote: "If we or our customers were to violate, or an operating system platform provider or application store believes that we or our customers have violated, its terms of service or policies, that operating system platform provider or application store could limit or discontinue our or our customers' access to its platform or store."
Unity also has a robust ad platform, but could also run into issues when Apple restricts the collection of user data known as IDFA on iOS14. IDFA is a unique device ID number that lets brands and agencies track ad effectiveness and target appropriate 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 as much as $200.8 billion by 2023.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
