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AeroMogul Update #11 (2023/09/18)

🕑 Added 2023-09-18 15:23:42 +0000 UTC

Comments

Eric Jones

The good news is that I'm only delaying the client to see if the issues get resolved. I will redirect any AM work time to the Logic/Server while I wait for a resolution. This might result in a delay for the Alpha build I wanted to release, but not a delay in finishing the overall game. The only real chance of a full game delay from this is if I have to change engines completely. As for Unity, it's really an effort to get F2P mobile games to use their ad network. They're entirely focused on mobile games. Which is why they keep using "Installs" as a tracking metric. (A recently leaked proposal Unity is working on still uses "Installs.") Both major mobile platforms, Google Play Store and App Store, report installs. I was looking at their 10Q a few days ago. Approximately 2/3rds of their revenues come from the ad platform. The other third comes from the engine and services built around it, like cloud, compiling, etc. They're burning through about $200M a quarter, and with 7700+ employees, they're about 3x larger than they should be. This move won't raise the needed revenues for Unity from subscription and install fees. But it would force many F2P games on mobile to use Unity's ad network. And ad's is now Unity's bread and butter. Folks pulling subscriptions won't change Unity's mind. But a 10-20% boycott of Unity's ad network will result in a $50M loss per quarter, $200M/year. That's enough to make a dint. Debt isn't cheap right now, but if they must, they could probably leverage a few billion more based on revenues and assets. I don't see the company dying. But they can be seriously wounded. I was musing with a friend that this is another case where a public company's sole focus is continued growth to the point that they neglect their core product/customer resulting in the destruction of their market share and possibly the death of the company. However, shareholders demand growth stocks instead of companies that narrowly focus on improvements to their main product, cornering their market, containing costs, and paying dividends to shareholders. We can thank the complex tax structures in the US for that.

Ehud Gat

Kind of sad to see Unity going into predatory economics here. I recognize that they are struggling financially but it seems like their action is akin to someone setting their house on fire because they're cold. Knowing your work, the delays are just that - delays. We can wait - it's worth it :)


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