- Wednesday, October 16, 2024
Unity Software Inc. (ticker symbol: U, -4.50%) experienced a decrease in shareholders' confidence after the announcement of new fees related to game downloads. This app-monetization and game-engine company saw its shares decline by 8%, reaching an intraday low of $35.83 during Wednesday's trading session.
In a recent blog post, Unity made it known that they would be implementing a "Unity Runtime Fee" based on the number of times a developer's game is downloaded by users. This decision was motivated by the fact that whenever a game is downloaded, the Unity Runtime is also installed. Unity believes that by charging an initial install-based fee, creators will have the opportunity to benefit from ongoing financial gains resulting from player engagement, as opposed to imposing a revenue share model.
Despite developers expressing their dissatisfaction online, Wells Fargo analyst Brian Fitzgerald maintains his positive outlook on Unity Software Inc. With a buy rating and a price target of $54, Fitzgerald argues that Unity's pricing and value have always been advantageous for developers. The Unity Runtime is essential because it enables games created with the Unity engine to function effectively on a large scale.
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