Unity Software Inc.’s shares fell Wednesday after the app-monetization and game-engine company introduced new fees based on how often a developer’s game is downloaded.
“We chose this because each time a game is downloaded, the Unity Runtime is also installed,” the company said. “Also we believe that an initial install-based fee allows creators to keep the ongoing financial gains from player engagement, unlike a revenue share.” Oppenheimer analyst Martin Yang, who has a perform rating on Unity, said that while the fee move helped convert free and lower-tier Unity subscribers into paying subscribers, it may also push them toward other game engines like Epic Games Inc.’s Unreal Engine.
Wells Fargo analyst Brian Fitzgerald, who set a buy rating and a $54 price target, said in a note following the post that while developers “voice outrage online,” Unity’s price and value “has long favored developers.”
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