Unity IPO | Games ReCAP Episode 028

[Music] what's up everybody welcome to another episode of games recap morning guys welcome back to our show about big news in the game industry who's us who are we I'm me Larry Charles this is brand fam and we are here with you every morning at 10:00 a.m. Monday through Friday happy Friday on twitch TV for slash blue underscore champs if you are missing any minute of this or want to catch up to any of our previous episodes you can catch us on our youtube comm forward slash blue champs if you want to support us directly keep the lights on and make this an audio podcast so that you can take us on your commute on the toilet anywhere that you want us to be with you whispering in your ears support us on

patreon your chance yeah and other than that if you like some shirts with our face on it puts our chance com4 slash merch alright so that covers all the pre-roll what is today's topic Larry unity IPO question mark is there is there a chance that unity is gonna be publicly traded because we keep hearing about unity being privately invested in we just found out that unity has a six billion dollar valuation following the latest investment deal this is an article that we saw on gamasutra today so shout out to everyone at unity enjoying that champagne with the raspberries in it this morning no you guys are you deserve it enjoy yourselves yeah I mean this is a huge deal unity has been rumored for a long time ever since John Russo tella which used to be the CEO va took over years ago day one he was like I'm the IPO guy I'm gonna make this work I'm gonna make you guys valuable and then everyone's gonna make

moneys so of course you know that's the big reason why he was he changed camp right it's a big reason why there's been such a big surge in unity support and development right a lot of good things happen when you're looking at a pure profit standpoint and making your company assets really really shine right so I know that it gets a bad rep when it becomes like from private to public offerings can you kind of educate the masses out there what the advantages are sure usually with a private valuation you are dealing with a smaller party that ends up having a bigger say right instead of bringing on hundreds of thousands of investors through going like with an IPO route you are bringing on like a single party usually representing like a majority share or a majority stake or minor but a single cash infusion of let's just say like two

three four billion dollars coming from one deal with one group who now becomes a partner instead of with an IPO you're basically saying like hey we have this much stock for sale all you folks out there with monies can go buy this stock some of these shares are voting shares you can weigh in on how the company's gonna go you now have hundreds of thousands of financial partners that are in this with you instead of like a smaller group easier to communicate with easier - less hard to control when you're going private unless mathematically they bought 50 50 point oh one percent or something like that and then they're essentially they're the decision makers now necie I think the good thing though about doing it privately at this stage is your plans your business plans what you want to achieve your objectives don't have to bleed they don't have to be forecasts they don't have to be publicly known which in some ways could be great ammunition for your competitors when you have your shareholders meetings when you have your annual reports and summaries and all of that if you're a private

company you don't actually have to share that information if you're a publicly traded company you literally have to share all that information all the time and you'd be a fool to think that your competitors don't own shares of your stock to get even the voting pamphlet now you send out once a year or two be part of the earnings calls or just to hear whatever information about your company as early as possible mm-hmm so that's one thing you protect yourself from and there's tremendous pressure right with the quarterly profits in the annual reports like people want to hear what are you doing right now that is gonna be a better ROI and you bring up another good point there and like for example if 10 cent were to come in and invest in your company you at least know that they have a lot of business inside of the game industry yeah they're likely going to understand more your specific goals as a game development company what you would need to prosper as a game development company like they're more in line with understanding why they invested in you right when you have hundreds of thousands of just random people around the world investing money it could be

just because they heard at a bar this unity stock thing yeah like put some money in that and they have voting shares they've no experience with gaming game development game development tools any of that but because they've put $30,000 into your stock they have $30,000 worth of votes potentially all right let's shareholders meetings or earnings calls etc etc yeah let's go over this article because they went through their latest round and you brought up a really interesting point right so let me read through this and then we'll talk about it Unity's valuation has climbed up to six billion dollars after the company signed an investment deal with di d1 Capital Partners Canada Pension Plan Investment Board light street capital bled edited well financed a five hundred twenty five million dollar transfer offer through common shareholders the engine maker were only secured the fools five hundred twenty five million if enough shareholders most of whom are former and current employees decide to sell unity

[Music] opportunity for you liquidity oh wow so people can cash in now well they're they're only gonna get the money if enough people decide to do it I see so it's this actually sounds pretty interesting because all these people have to be contacted and wrangled together to be like okay this company is essentially trying to buy into unity not necessarily we're just giving you money to grow on some sort of like partnership you will return this much in the future mm-hmm they're literally like no we know that they're taking outstanding we want to actually purchase from people who have them but it's not a publicly traded company so this is the way that they have to do it so you have these people who have been given options you have people who have left the company but still have stock or whatever like private stock there now like well either I wait for IPO day and I don't know how it's gonna perform yeah but I have a guaranteed this much of the five hundred twenty five million dollars times whatever the percentage value of that to my shares is I will get this essentially right now thirty to ninety days hmm would you I don't know which

depends on the number if I had anything like four hundred five hundred thousand shares of unity' stock I'd be looking to do something I might not sell at all yeah but I'd be looking at like like had some sort of like just a taste whet my appetite this it taste but let that's usually good news right if they are asking the bias on your stock now before I peel you can only take it in as good news right not bad news well I guess from what I understand of how it sounds like this deal is structured though it could backfire if everyone that has those stock is on IPO board then this really means nothing if all the stock has to come from shares outstanding from people who literally have been given to stock left the company no longer at unity if those people are holding out for IPO day like it doesn't matter what you say to them if they believe that like actually this is gonna be worth way more than the twenty five thousand I could get for my hundred thousand shares I think each shares gonna be worth nineteen twenty thirty dollars mm-hmm

and that twenty five thousand ain't gonna be [ __ ] compared to the real money exact yeah well that's a lot to discuss there so uh assuming unity receives a full amount it'll take the company recent funding total to six hundred seventy five million with a good chunk of that can be being raised through a hefty series II funding round that takes place in May it's unclear whether the latest investment want that any impact on unities yeah IPO plans the company has apparently been preparing to go public the first half of 2020 as long as the market conditions are favorable although we're yet to hear anything official six more months until unity IPO so then this deal if you have unity shares right now you hold all the power based on what I'm hearing you have a company coming in that knows six months from now that IPO is probably gonna do well they're there they're betting that the IPO is going to do well so they're trying to get on the

cheap yeah as much unity stocks privately possible is what it seems like especially when I look at and this is speculation here but what do we say d1 Capital Partners Canada Pension Plan Investment Board right like what games do those companies invest in other than this deal right where have you seen that name tied to the investment of a game company the research or development of early level game company so this to me seems like all based on like numbers speculation where they're like hey this is going to be a good move it's gonna make our portfolios look great let's get this unity thing there's a guess I don't know behind the scenes I have no inside information right but like so that that is what you'd be looking at like who's part of this deal right so who wants to buy this that's why I use 10 cent before because 10 cent I see that name with game company game development investments all the time the the Canada Pension Plan Investment Board mm-hmm like just say that to you see they're not here because they like you know rendering or 60 frames a second or

microtransactions they're here because they're like this unity thing we know is going to be a big IPO somebody told us who's done some research who is a consultant right has identified this as a deal yeah so I think that this kind of feels like that to me I see I could be completely wrong I'm just guessing from the outside I got my two fingers through the blinds yeah yeah I mean these are obviously big players yeah and if they wanted to buy on the cheap this is the time to do it yeah and they wouldn't buy it it would be so yeah that was cool so as an employee if I'm hearing 20/20 Emily no I'll hold out I honestly think I would do I would do a little of both to be honest you know even if my financial situation was great yeah you never know what's gonna have an IP they like there's a lot of companies who like go in and like it's super excited like yeah yeah the other day and then they spiked drop yeah yeah I mean people buy and buy I probably would try to protect my investment at least somewhat and I would say well this is a guarantee

you know they have the money we get it and they will buy share for share I would find some sort of point I was comfortable with which everyone I thought would do better I'd probably do something like 70/30 maybe like yeah give me a little bump just so I can be happy about everything you know and even if this ends up being bad because I would have made more on IPO day I hadn't I had some now right like I can do something now to be excited about to like pay our debt me a house and hey whatever whatever and then a huge bump coming January 2020 I'm still gonna be celebrating because there's any percent sure that's true yeah there's definitely a benefit to kind of play both sides but that's good news and that that means that people are believing you know the product and the plans going forward after IPO we're big time capital investors are saying can you sell some of your stuff now yes I guess my strategy to anyone out there who's listening watching and I'm not like it an investment guru or anything

like that I just I just like to take advantage of guarantees yeah you know what I mean like the IPO is still a risk you don't know what it's gonna come out at we don't know how well it's going to do we don't know who's gonna be there to swoop it up we imagine that all those things will be favorable yeah but we don't know yeah but when I have a like okay well here this is the cash is on the table Larry we will give you share per share yeah some percentage of this you know I'm gonna at least take some because I know that this is a guarantee I now have this cash under my name and it's mine today so I usually try to take advantage of our guarantee at least some at least just yeah you know you may as well well let's look at unity as company right what effect does this not just this but the idea when it does go IPO because the number one fear for gain develop recently they're gonna change everything they're gonna monetize it's you're gonna make sure you do it's the bottom line all the time right that's and that's the they're they're gonna have a premium subscription plan like Adobe out there you know Adobe's kind of like so

but there's the evil guy right but they're making mad money the first thing I look at is what's the low-hanging fruit because that's usually what a new IPO company will attack in trying to it's not like once you IPO I feel like you go into proof mode of like see this is why like we want our stock to go up 10 20 30 40 % within the year if possible and so I always see CEOs attacking like the low-hanging fruit what's the money that they leave on the table that's obvious yeah that usually ends up being the things that you see unity or whatever company doing first yeah so is there a market that isn't monetized properly is there something that's very generous that they're doing that they could scale back on what are those like 2 3 4 initiatives that are like oh my god why weren't we doing that before those are usually the first things that get like see look at us you invested in this here's your 20% return so if we were to like really sit down and say what are those areas where we think either unity isn't doing that great or unity could be monetizing better yeah what could that be possibly the asset store I know that

that's that's a moneymaker for them yeah I don't know how big or how small it is but I bet with like a good revamp a great way to discover content a cleaner presentation they could get way more assets in and out of that store yeah are they taxed what is the rate that they tax the stuff going into the store right like hey what's your cut is it 10% well now it's 11.5 now it's 12 or something something minor but if you pair that with but look at how easier it is to find information look at how cleaner their presentation is look at how yeah as long as people understand like okay cool so I'm getting 2% less but I'm anticipating I'm gonna sell 20% more yeah not so bad yeah what other types of businesses are yet well obviously the games pay a percentage right back to the company by licensing their engine their engine of themselves you know their professional version that you do pay upfront yeah so they get money from that so the only equivalent

that I think with software development is the Adobe licensing which is you know they basically turn all their one-time payment into a subscription fee where no one really or making it really hard for people to own the product and even though it's like a crime against anybody that uses the software they've been reporting like crazy amount of profits it's I mean it's better honestly I as a consumer I was a little upset at first about the like oh man you know instead of buying my one copy of like photoshop cs3 yeah and then keeping it for eight nine years yeah because I only use like basic level tools that probably won't change you know I'm now gonna pay $49 a month to have like the whole suite I hate that idea these software it's gonna i've been outpaced already the amount of my some

monthly subscription has outpaced how much i had to pay previously I get like cuz I'm the one version and then just ride it out until like literally yeah I just know that I've been enticed to upgrade for some other reason but I usually get like six seven years out of like a major software package like man so now I get 30 days yeah it's uh I I would like to hope that this will give the read because the I feel the most comfortable with stagnant companies going IPO because you know get off your lazy ass do something about it right and so when you're a publicly owned you're kind of constantly being pressured to come up with something new yeah that's why I always ask that valve be the person to just do something because I feel like they're doing all types of wrong moves over there just too relaxed yeah I think valve IPO would be great for the fans because it's going to first then - yeah yeah I think unity IPO I'm

actually scared about as a developer and fan of the company mainly because I see what happens when you introduce a whole bunch of people to your barbecue who aren't even family members yeah so so to speak yeah what I'm saying yeah yeah I mean like unity and unreal right they're the two major engine companies and they're both currently private yeah and then innovation that these two guys have been going it has been great for the industry it forced them to be free it forced them to be more democratizing they're trying to outsell each other in a free market in a free market is already what we need is where I'm happy for that and so I don't know man I feel like if you need any does go public it really really depends on what the romance gonna look like but they might start taking a backseat to unreal because unreal can-do has the flexibility to do what they need to do unreal has the funding currently because of how much they've pulled in from for

night alone yeah they definitely have a talent pool like who knows like we keep seeing the names that keep going to epic to work they're both on the tech side and on the development side yeah yeah and they don't have to answer to anybody yes and that's an advantage imagine if epic right now with how much they make off a fortnight I think it would be bad for them to think I appeal yeah because then they start looking at dividends right away yeah right to know that like wow we put in let's say 18 million dollars of work into fortnight this quarter but we made 1.2 billion dollars off a fortnight this quarter yeah you know what that means you then put that 1 point what is that 1 point was that 1 billion dollars or something or one point one nine eight billion dollars on the table and you chop that [ __ ] up into all the pieces for all the shareholders who are supposed to get dividends for that quarter now and then you give it back yeah that's that's gonna be a tough it's gonna be a tough one for epic yeah

it's too tough yeah I don't know man I think it'd be great for the employees of course once they do go I feel right yeah we'll get Perry but as a consumer as a developer you know we've been liking the attitude for game development the last few years we've been kind of spoiled with that the only advice change right if they're looking at one course ain't we're not making as much last corner yeah it always changes the attitude when money is involved yeah it's it's tough man and it's it is tough because I'll take it even a step further I feel like when when shareholders money is involved yeah complete complete yeah more demography in time oh my god yeah because when people who don't understand why you exist as a company but they still have voting rights or own a piece of the company it usually boils down to the thing that they care about which is return on investment either that's dividend or stock price one of those two

things need to be in the favor of the person yeah who doesn't even play your game but for all intents and purposes is still a piece owner of your company right they will use their tick-box votes to say more market transactions you know more skins more dances more more of the things that make us money of course it's like how long how much money do you want how long till I get it back I mean those are the two main questions one of those two investors and not a lot of people have ten years a wait time to see a company grow into something that's never been done before yeah and so I think we're I would love to even spend some time to educate myself more as just how much power how much how much the like shareholder effect can curve or sway a company's trajectories or their their long-term plans like I have seen like people rise up and have people removed who they feel has been incompetent or if they you know explicitly show like they

don't like something and they vote with their money by dumping a stock things like that like I've seen those effects make companies make decisions differently and so that's what always scares me about something I love now going IPO because the way that I love that I just already know he's gonna change completely and forever well is there a software in mine that recently gone well not recently but in the past I've gone IPO and completely changes software that when I view the company stance and structure that's interesting I haven't actually followed a lot of like IPL software but yes the best would be Facebook this begins the game oh yeah man that was a sharp sharp decline remember how Facebook was before Facebook was cool back then at marketplace yeah that was a huge difference right there now they're like kind of vying for groups as your main use product you're back to forms you back to forums do you guys were a social networking King now

you're back to forums as the future yeah that is very true like I felt like that was a case in scenario where if the original goal had just been kept and where was where it was like I want to connect with friends haven't seen for a while and stay connected to where it has evolved now where it's all about like your user data and how do we sell things to you and all types of privacy issues with that and then that's why I say stuff like it scares me because the Facebook yeah Facebook effect Instagram even Instagram is more part from the Facebook but people are seeing the Facebook influence yeah they're like ads every 4th every four slides is like hey Larry here's all the 25 new wing flavors at wing stop oh my god this is racist yeah I did say

yesterday for four slides like every four swipe swipe swipe sweat so dog cat new car wings do you really see that body building vacation my baby did this boom advertisement they slide them in there man nothing you can do you just slide them right on in see I feel like that's the case for Zuckerberg needs to watch the social network to see Prime Zuckerberg about like oh ads aren't cool man and remember what it used to be like on that Kansas named Jesse Eisenberg yeah needs to teach Mark Zuckerberg how to be Mars ever what you used to be like but it's Shue I mean that's the yeah Instagram is still has stories it's becoming its its main thing now they ripped that from snapchat that day but but these are software companies are losing touch with what it was supposed to be for the the value of it right

and these are being shifted towards what's shareholder wants more so than the user and so the question is as always with the balancing act of that do the customers have enough patience for you to figure out that balance where it pleases both sides and what's a successful software company that balance both that people are happy about the happy about the product even though is and the shareholders loving it is their product besides maybe see the the hard part for me is thinking of what software's have gone public that the users still love and enjoy well Silicon Valley right it's plenty like I know didn't you bring went public but that didn't go too well right it's like a lot less than they had hoped I don't recall how uber did after IPO or the lift or any of these guys actually I didn't because the lot went IPO this past year right but a lot of software companies in Silicon Valley how the

promise of a one hundred twenty billion dollar under goober IPO evaporation executive shake-up a month after IPO for over because we work recently is prepping and then we work those co-working spaces I see but then recently the founder or whatever CEO just like liquidated stocks like a good percentage more than twenty five percent at one time look it up it was alarming enough number where people were like why would you do this before you IPO because that's the loss of confidence and its tenure and stock trades it's it's a thing that people need to know about when they take sea level jobs you can't treat your portfolio like you cashed out over seven hundred million dollars ahead of IPO total like do they say like seven hundred million out of like seven

billion which I know it's not true that sounds like a substantial it's a Mis mix of stock sales and loans secured by at good I don't know how much percentage despite the loans means a single he's still the single largest shareholder in the company okay so then when I hear something like that you know I just try to look into it a little more to see like okay sure that number sounds big but like really break down the move and say did he liquidate all his stock did he look at a 10% 20% 30% 40% 50% is he still like you said majority shareholder or is he like cleaning the pipes so that he can get the hell out of there quickly without friction that's what I try to anticipate but nonetheless that type of a move before IPO if you had confidence in the company and you don't there's gonna like boom you wouldn't sell the stock before the boom you would sell it after the boom mm-hmm and that's not even inside information that's just like no judge would be mad at you for like inside information is actually selling it before the IPO everyone knows your IPO

is coming out so that's public information yeah everyone knows when now you selling after the date no one is gonna be like oh he had secret inside no like that's what a lot of people do we wait for the IPO that we sell yeah to sell significantly beforehand and be the CEO of the company is that's when the IRS starts sniffing around and say know what's going on here the sole man that that's yeah that's really in the weeds the like he's a CEO so of course he has inside info yeah so how is that not allowed er is allowed it's allowing so if he owns the stock even as the CEO he can sell the stock I would imagine right like if it says it's his right to sell man if it was shares that were presented to him in some sort of compensation package or Simon ball whatever whatever yeah that's his property he can sell his ownership the the the way it looks the way it shows up on paper to the radar from the outside world is is the discrepancy that he has to worry about and or her and this is

just a general statement is like what message are you sending by your trades what messages are you sending to the company to the shareholders to the people who invest in the company like your personal life your trade especially one that big regardless of you just being like I wanted a seven hundred million dollar yacht and here's how I can finance it you are legally allowed that clean and clear mm-hmm but everyone else was looking at the company is looking at that move that you made for your personal life and trying to pull out business information from it and so that's the that's the tough spot so I always said if I was a CEO at a company I'm just gonna keep all the stock that I have while I'm there and then when I'm going it's back to we land in DeLand Larry who needs who needs uber stock I got that mover stock 700 million I'll cut it down to six nine yeah man three problems to have but yeah like all the Silicon Valley companies that went IPO man I'm trying to think through all and it actually succeeded to please both shareholders and the users

and I have a hard time nailing it I guess because like with Tesla right obviously he's constantly Elon Musk is constantly being trying to be thrown under the bus right because there's such an innovative company tesslar drivers love it it seems like everyone loves a product but then they're always you know in the red with the stocks and people are always trying to tear them down I think Tesla has the biggest fight because the way it is doesn't want them to win yeah and that's one of the big problems is small profit margin instead of instead of businesses embracing the fact that change is coming yeah they want to be as rigid as possible because they figured that they found a gold mine right yeah there might they spent all their time and resources into mining the gold mine Yeah right in order for Tesla to win my gold mine disappears yeah right so instead of me saying well it's probably better for the whole world if I just learn how to make electronic cars too and we focus on clean renewable

energy sources for fuel yeah no I already found the gold mine we've been running this gold mine for years and there's still more gold so long as nothing comes to replace it yeah they're trying to kill us off man Tesla has such a fight but they're winning I mean especially out here in California you see someone in the Tesla every time you blink your eyes so high now and it looks great luxury yeah they're the most powerful vehicles on the road I mean the Tesla Roadster when it drops when a normal consumer buys that car they the fastest car produced yeah that is like street-legal damn from a factory Wow zero to sixty it was at one point nine seconds was ridiculous and that's the base model that's the like oh you couldn't afford the 100 C 100 B yeah broke yeah they have such a good brand where I feel like they'll survive the onslaught right but when it comes to software like unity like I can't figure

out something that came that went public that is doing well for both consumers and shareholders because the recent purchase of substance which is a texturing program for the non game developer major program to Adobe was to me a blow because it feels like I'm sure they needed the money right the substance guys I like yes so I heard it was a tight ship over there until they sold and so it just I don't like the Adobe business model man it's not it's not the same as a media entertainment service where you're okay with pain net flix $10 a month's you have new videos and movies and shows every month right into your library Adobe's Adobe it's like it's the same program this month as next month with minor updates you know I

mean I'm not paying for an a major overhaul the best way to describe it is like let's say you're a carpenter yeah but you instead of going to Sears to buy a screwdriver yeah you keep paying $2 a month to rent a screwdriver sure rent that's that's the feeling all right the feeling would be mutual if I eventually own that screwdriver but right now I'm not artists consider Adobe tools like literally tools yeah use that for their craft to make their thing but they are not allowed to just flat-out purchase software right yeah yeah I used to I know it Dobby makes it super hard I think there is a way to just buy it outright but they make it super hard to kind of find that because they prefer the subscription for us so yeah buy it outright that's they know one in three of those cereals that they send out is ends up being a cracked distributed online on torrent site whatever yes oh yeah well unity right now they had the free version for anyone that wants to like work with it and jump

with it that's not gonna change I think it's stupid for them to to close that gate they have a subscription service obviously for professionals that can buy it outright too they have that option that want to use it and ship it with their projects the only thing I see with IPO is they've raising the prices are add more micro transactions and that's what's scary when it comes to software because with unreal and stuff anything they come out with innovative that is pushing the boundaries of the industry you'll get that free in the next update right if unity decides to engage some of those updates which I hope they don't because that would be dumb they want everybody to ease to it because the more reliant they are on the tools the more likely they're gonna be lifelong customers right oh yeah I I I wonder what major moves they can do to

up their shareholders value after IPO like what can they do on the roadmap that just like really pumps in more money well if you were if you were a Unity subscriber right now right let's say you're giving them whatever their subscription fee is for the cuz I have the free version yeah I'm not so deep into the tech side yeah more than the free version right where would you say you would actually give unity money to solve a problem for you do you have anything specific where you're like this part of the experience is continuing to be a problem for me whether that's on education whether that's on deployment whether that's on assets or even just the engine itself not doing something right where would you literally like I would have no problem giving unity like 20 bucks if they fix this or did this or did that because again those are the things that like will stand out as like well of course we're happily do that it's low-hanging fruit yeah you'd have to ask someone more advanced in unit even me yeah I mean as a

businessman I guess that's how I would try to start to look for what are the monetization opportunities for unity what could they sell cuz they're not gonna sell another engine they're not gonna sell a revamp of the engine and then put that behind a different pay wall they've already established like where the business is going right now is they've like this is a unity 2019 2020 2021 these are the updates you're getting for the year and yada yada be a part of that subscription it could be an update fee I don't know that's it would be more user reliance right it would be more transitioning out of just using it for game development right for entertainment it's more like can that fridge in your kitchen incorporate unity functions like King things around your household interact with you as a person that would be you would look at unity is what are the applications of unity outside of real time an application smart yeah of course

be [ __ ] Road to the matrix finding a whole new goldmine like all right well here's unity powering real-time simulations here's unity powering hey I need stuff for like psychic stuff exactly here's unity powering like some sort of amoeba example and that would be the globalization of unity and the ever-increasing profit margin that they're looking for and I think both unreal and unity are looking at outside of game development like if 10 20 years from now their engine is primarily used for games that would be a failure in my opinion every industry should be using these engines what did they do they like they have two versions of unreal which is the same thing built like the Unreal got rid of that did not work it's just it's stupid the thing they looked at that and I did all the same stuff yeah they just changed the icon yeah they got rid of that I think it's

just back to one one thing now I think that's smart it's not so much that you want you don't need to have two screwdrivers you need to tell people who use screwdrivers one way you can use it that way and tell people who want to use screwdrivers is a knife that yeah it also makes a great yeah you pull that [ __ ] out cuz someone's trying to rob you yeah it'll poke oh yeah yeah I mean like it's the tool itself does what it's supposed to do and if people are finding other ways to apply the tool then that's just great right you don't have to rebrand the tool to then handle this demographic I think there's a lot of overlap between whatever resources you're splitting up yeah yeah if anyone had like two different versions of the same thing you're splitting it your team and resources to to build the same thing in that like oh my god how annoying yeah eventually you're gonna have to transfer your resources over to make that update because you just update it all it's a disaster glad to hear that enterprise edition no disrespect to anybody who might have had to eat some crow on that

but yeah you know glad that epic is focusing on just doing it the Unreal Engine and then considering the branding for the Unreal Engine as something that makes things possible rent and not necessarily something that makes games possible yeah so I think of anything unity is looking at that roadmap and it's like how do we not just become a game development yeah game engine primarily because it obviously they dominate the mobile market they're huge from among the indie developers the only area that they're not very strong at is like top level quality right they don't really build like they have they're slowly changing that conversation but they haven't really conquered that conversation yet right everyone still looks at Unruh as like the top dog when it comes to high quality for that like I feel like they have the crisis effect going with them right now like I all the demos that I've seen come from unity from the team of people who like our dope at unity great artists yeah there's a different rection I see like all those

little like cinematic demos that they did and like the gameplay a project files you can open up and like poke around those environments they always look fantastic they always look great but I always felt like it was like beautiful corner style execution and not necessarily like here there's your character go do whatever you want right there's there's long they're definitely lacking like actual games where unreligious has been doing it for a long time yeah and so the best people who use the tool can't be the people that make the tool yeah if that's the case that's what I call the crisis effect exactly all the good crisis games Crytek made yeah all the good Crytek made you go all right the good games from Crytek came from the people that made Crytek you know and everything else was just like we're having a hard time trying to figure this out can't use it yeah I mean epic has fortnight they can show that the themselves can be developers using their own tools and going great things unity will never go that direction they're never gonna have it internal unity team you know to make a game to make a game no that's nothing like this

though it's it's not necessarily to make the game but to make two other people aware of what's possible with making a game I think if anything they'll make templates kind of like what you know epic does with their example projects but not to the extent where like it's a $60 product and Game of the Year or like a phenomenal I think the worst thing they could do is start an internal game studio that is the worst thing they can do I think that was the worst thing they could do but I don't so many ways to [ __ ] up if I look at a long term strategy I don't think it would be against a ten twenty year strategy for them to have a team that is internally producing first party like hey we are the unity team we have designers engineers artists animators maybe a team of like 20 at the most yeah but putting out like a solid product to show the capabilities and also make revenue and like I don't think that that they need to think outside of the box like they need to be [ __ ] at NASA or

SpaceX and the astronauts are using unity inside those ships like that that is changing the world right there and there's way more money on that side than just entertainment value alright so if the goal is to turn the world into the matrix right it's either unreal unity I mean that is the the road that we're leading to a our VR simulation so good luck to everybody at unity and again enjoy that champagne with the raspberries floating on the top mm-hmm it's always a good celebration day yeah and so uh let me get that going here so that concludes today's games recap we're

gonna take a break and come back with the backseat gamer it is my time to play a classic game that I've worked on layer work done a little but I'd never played the hard work right so we're gonna be playing call of duty war two I have not yet opened this up you on that free coffee I'm gonna check it out I'm gonna play it so thank you guys for joining us on twitch TV 4/4 champs you're watching this after the fact while you're watching over at youtube-dot-com 4/3 chance you are supporting us we are thankful if you want to support us go ahead and go to patreon.com/scishow champs to turn this show into an audio podcast every day any dollar or sentence

four dollars research and then being a Twitter prime subscriber also helps that's money in our pockets directly from you to us and that ends today's episode so let's go ahead [Music] you [Music] you