![]() ![]() Second, it provides Unreal with significant monetary resources and the freedom to invest in its engine without having to generate a return in the short-term. Recent estimates list nearly 125M Fortnite players, while the game is expected to generate $2B by the end of 2018.įortnite’s massive success has given Epic and the Unreal Engine some key advantages over competitors.įirst, it provides a valuable feedback loop the Unreal Engine designers, who in turn regularly upgrade the Unreal Engine to improve the performance of the game. While these segments of the overall gaming market don’t see the same level of growth as mobile gaming, they do still generate a significant amount of revenue (up to $67B by year-end).Įpic Games became a mainstream sensation in 2018 with the introduction of its massive multiplayer online (MMO) game Fortnite Battle Royale. Where Unity is known for mobile gaming, Unreal is known for its focus on PC and console. After publishing the game, Epic chose to share the engine and tools used to develop and support it, and the Unreal Engine was born. It grew out of Epic’s Unreal series, which included some of the first successful online multiplayer games. Unreal Engine, developed, owned, and operated by Tencent-backed Epic Games, was one of the first publicly available gaming engines. Unreal aims to capitalize on smartphone growth by optimizing its engine for mobile The most recent releases improved rendering and performance to improve PC and console gaming, while the next version promises advanced machine learning capabilities. Unity’s $450M war chest has allowed it to build on its existing strengths while also expanding into new areas. The company released the latest version of its engine in early July, and has plans to release the next version sometime this fall. The company last raised a $250M Series D from Silver Lake in May 2017, when it was valued at $2.6B. To date, Unity has raised nearly $450M from investors like Silver Lake, DFJ Growth, Sequoia, Thrive, and Diane Greene (CEO of Google Cloud). Unity has supported nearly 40M asset downloads, compared to 8M on Unreal - likely due to all the smaller studios its pricing model has attracted.Īs Unity’s business model yields results, investors have taken notice. This marketplace provides another source of revenue for Unity, which takes a 30% cut from all peer-to-peer transactions. The store is an online portal where developers can buy and sell pre-configured gaming assets, ranging from digital landscapes and buildings to vehicles and weapons. This growing adoption by smaller studios has benefitted Unity by driving more users to its marketplace, the Unity Asset Store. This model has made Unity particularly popular with smaller up-and-coming studios that cannot afford expensive gaming engines. The company even offers a free version for organizations that earn <$100K in annual revenue or that have raised <$100K in total funding. Unity’s pricing model is based on its clients’ revenue: the more revenue earned or money raised, the greater the cost per developer. A ccording to the company’s website, over 60% of all AR/VR content is made with Unity. Sissie Hsiao, VP of mobile advertising at Google, cited Unity’s “incredible reach with 1.5 billion devices on Android and iOS” as the motivation behind the deal.īeyond mobile development, Unity is also the engine of choice for AR/VR developers. Unity’s dominance in the fast-growing mobile segment has made it an appealing partner: Google recently partnered with it for a digital advertising campaign. ![]() One of the most popular mobile games built using Unity is Nintendo’s Pokémon Go, which reached 5M daily active users in April 2017 and has been downloaded more than 800M times. Many of the mobile games published by incumbents like Tencent and NetEase leverage the Unity Engine. Recently, Unity has particularly benefitted from the growing popularity of mobile gaming throughout Asia. Unity will be an important contributor to future growth, providing the digital infrastructure necessary to take the mobile gaming segment $100B+ in the next few years. ![]() Mobile gaming is the fastest-growing segment in the overall gaming industry, expected to rise at an average annual rate of 17%+ between 20. In 2016, over 30% of the top 1000 mobile games were built using Unity, which reported having 45% of the entire global game engine market. Unity Technologies was founded in 2003 and has since risen to become one of the most popular game development engines used today, powering nearly half of all mobile games. CLONE Unity refines its engine to attract sophisticated PC & console game developers ![]()
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