It is, in all sense of the word, “game on” for San Francisco based cross-platform game engine developer Unity Software, as it raises more than USD 1.3 billion at its initial public offering. As a company that provides tool kits to game developers, Unity Technology has gained the trust of both indie and major league devs over the course years of operation for its very reliable Unity Engine.
Valued at around $13.7 billion at the IPO, Unity has managed to sell 25 million shares at 52 dollars per share and is set to begin trading today under its hugely popular ‘U’ logo.
Thus, Unity’s final IPO price went far ahead of what was initially expected, with primary expectations held by the company regarding the value of its shares somewhere between 34 and 42 dollars per share.
Unity had initially filed its S-1 statement with the United States Security and Exchange Commission about a month ago and gained significant concerns from the video game sphere which was astonished by the rate of loss the company was incurring.Even with around 1.5 million monthly users in 2019, Unity reportedly suffered a net loss of 163.2 million dollars from revenue of 541.8 million dollars.
The journey to the public sphere has been a long and bumpy one for Unity, but it is something that is expected to provide the company with stability in the long run.
The company hasn’t been on the same playing field with the big-time game developers, as it has mostly been producing the tools and foundation that allowed developers to build their game upon. However, the engine’s ability to handle and host a wide range of game mechanics, allowing game developers the full freedom of expression what has given Unity the status of a giant in the gaming industry.
The company’s business model is built around two primary areas, creating tools for game development and tools for managing and monetizing content.Finance reports suggest that the company currently has around 125 million dollars in debts, hence the money raised from the IPO will go a long way in turning the company’s fortune and pushing it towards profit.
All that said, Unity’s valuation of 13.7 billion dollars would come off as a huge boost to the company, as its direct, much bigger and popular competitor Epic Games had recently had its company valued at 14.7 billion dollars.
Epic Game’s Unreal Engine has been deemed to be Unity’s direct rival for a long time, but in terms of overall popularity, Epic Games has trumped Unity by a country mile due to its own game hosting site and platform. Epic Games came under widespread popularity due to its hugely popular Battle Royale game, Fortnite, and its recent controversy with Apple regarding said game.
However, with these recent developments, Unity is expected to bridge the gap with its competitors as it looks to make a move beyond core gaming and focus its attention on other applications too. While simultaneously providing a platform for both indie and major game developers to build their videogames upon.