Core Insights - The competition between Roblox Corporation (RBLX) and Unity Software Inc. (U) highlights their respective strengths in the metaverse and digital interaction space, with Roblox focusing on user-generated gaming and Unity on development tools for various immersive experiences [1][2] Summary of Roblox (RBLX) - Roblox has seen a significant increase in daily active users, reaching 151.5 million, a 70% year-over-year growth, with total engagement hours at 39.6 billion [3] - The company reported $1.92 billion in bookings, also up 70% year over year, driven by increased payer penetration and strong performance in emerging markets like India and Indonesia [4] - Developer earnings reached a record $427.9 million in Q3 2025, surpassing $1 billion in the first nine months of 2025, supported by major tech upgrades and expansion into competitive gaming genres [5] - Despite strong bookings, Roblox faces near-term margin compression due to rising costs in infrastructure and safety initiatives, which may delay profitability [6][7] Summary of Unity (U) - Unity's Q3 2025 revenues were $470.6 million, reflecting a 5% year-over-year increase, with a notable 11% sequential growth in its Grow segment driven by Vector AI adoption [8] - The company achieved $109 million in adjusted EBITDA with 23% margins, marking a significant turnaround from previous restructuring phases [8] - Unity's Vector AI platform is scalable and enhances return on ad spend (ROAS) for developers, positioning it as a long-term growth engine [9] - Unity is diversifying its offerings beyond game engine software into areas like cross-platform commerce and AR/XR technologies, with Unity 6 adoption accelerating to 9.4 million downloads, a 42% increase quarter over quarter [10][11] - However, Unity's total revenue growth remains low compared to high-growth peers, with guidance for mid-single-digit growth in the Grow segment for Q4 2025 [12] Financial Estimates - The Zacks Consensus Estimate for RBLX's 2026 sales indicates a year-over-year growth of 21.8%, but the loss per share is expected to widen to $1.94 [13] - For Unity, the fiscal 2026 sales and EPS estimates imply year-over-year growth of 12.1% and 13.4%, respectively, with earnings estimates having increased recently [14] Price Performance & Valuation - RBLX stock has gained 9.4% over the past six months, while U's shares have surged 78.7% in the same period [15] - RBLX is trading at a forward price-to-sales ratio of 7.63X, below its median of 8.69X, while U's forward sales multiple is at 8.92X, above its median of 5.59X [17] Conclusion - Unity appears better positioned than Roblox, benefiting from improved profitability and cash flow, while Roblox's heavy spending is impacting margins and delaying profitability gains [19][21]

Investment Rating - The industry rating is "Recommended" [4] Core Insights & Investment Recommendations - Unity and Epic Games announced a strategic partnership to create an open and interoperable ecosystem for game engines, allowing developers to publish Unity games on the Fortnite platform with over 500 million registered accounts, enhancing user reach and commercialization efficiency [2][21] - NVIDIA's quarterly performance exceeded expectations, with data center revenue growing by 289% year-on-year, reflecting strong demand for AI infrastructure [3][22] - The report suggests focusing on investment opportunities in leading internet companies in Hong Kong, the gaming industry, and the film and cultural tourism sectors, driven by consumption policies and technological empowerment [3][22] Sub-industry Data Film Industry - The top three films by box office this week are "Demon Slayer: Infinity Castle" with 134.67 million yuan (42.9% market share), "Wild Era" with 75.67 million yuan (24.1%), and "Now You See Me 3" with 55.44 million yuan (17.7%) [23][24] Gaming Industry - The top three iOS games by revenue are "Teamfight Tactics," "Dungeon & Fighter: Origin," and "Honor of Kings," while the top three Android games are "Heart Town," "Sword and Magic Legend," and "My Leisure Time" [25] TV Series Industry - The top three TV series by broadcasting index are "Tang Dynasty Ghost Stories: Chang'an," "Four Happiness," and "Phoenix Platform," with indices of 85.5, 82.4, and 81.8 respectively [26][27] Variety Shows & Animation - The top variety show is "Now Departing Season 3" with a broadcasting index of 82.4, followed by "Wonderful Night Season 2" and "Flowers and Youth Together" [28][29] - The top three animated shows by viewership index are "Xian Ni" with 212.8, "Happy Hammer" with 191.6, and "Swallowing the Starry Sky" with 187.2 [30]

Core Insights - Unity and Epic Games have announced a collaboration aimed at promoting an open and interoperable future in the gaming industry, marking a surprising shift from competition to cooperation [1] - The collaboration allows developers to publish their Unity games on Epic Games' "Fortnite," which boasts over 500 million registered accounts, and participate in its creator economy [1][4] - Unity will integrate Unreal Engine support into its cross-platform commercial system, providing more options for developers using Unreal Engine [1][10] Collaboration Details - The partnership focuses on two main areas: enabling Unity developers to publish games on "Fortnite" and integrating Unreal Engine support into Unity's commercial system [1][10] - Specific details of the collaboration will be revealed in the coming year [1] - This collaboration does not involve direct engine technology cooperation but aims to enhance the ecosystem for light developers and core users [1][4] Economic Context - The acquisition of Cocos for $5.1 billion highlights the challenges of commercializing game engines, as ongoing investment in technology teams is crucial [2] - "Fortnite" serves as a significant revenue source for Epic Games, supporting its investments and acquisitions [2] User-Generated Content (UGC) Focus - Epic Games is positioning itself as a UGC game development platform to expand its creator ecosystem [4] - The success of UGC games relies on the ability of teams to efficiently produce content, which is a core competitive advantage [4][7] - In 2024, Epic Games paid creators $352 million for games created in "Fortnite," with a total of over $722 million paid to developers [5][6] Revenue Sharing Model - A new revenue-sharing model allows creators to sell items directly on their islands, initially keeping 100% of sales for one year, then adjusting to 50% [6] - This model aims to attract more creators and enhance the UGC ecosystem [6] Market Positioning - "Fortnite" ranks first in revenue and monthly active users across major markets in the US and Europe as of July 2025 [7] - Over 70,000 users created islands in "Fortnite," accounting for 36.5% of total game time in 2024 [7] Long-term Strategy - The collaboration allows Unity to tap into the revenue potential of "Fortnite," while Epic Games benefits from a broader creator base [8] - Unity's recent launch of a cross-platform business service addresses developers' needs for managing global commerce and catalogs [10] Industry Trends - The increasing importance of cross-platform capabilities in the gaming industry is underscored by this collaboration [11] - Both companies emphasize the need for cooperation to build a fair and open metaverse, focusing on the UGC attributes of their products [11]

Core Insights - Epic Games and Unity have officially announced a partnership to integrate the Unity engine into the popular game Fortnite, aiming to upgrade it towards an "open metaverse" space for global players and creators [1][3] Group 1: Partnership Details - The collaboration will break the previous limitations of Fortnite's closed ecosystem, allowing creators to use Unity's tools for content creation and enabling cross-engine content import and interoperability [1] - Unity's engine offers the advantage of "build once, deploy everywhere," significantly lowering the barriers for cross-platform content creation and migration [1] Group 2: User Engagement and Ecosystem Expansion - The upgraded gaming lobby experience in Fortnite is expected to be more intuitive and fluid, allowing players to browse game content and purchase skins directly through a web interface [3] - Epic Games aims to create an open and shared ecosystem, allowing players to navigate to other companies' content without Epic's involvement in development or direct revenue pursuit [3] - Epic has been expanding Fortnite's ecosystem from a pure "battle royale" model to a comprehensive ecosystem similar to Roblox, attracting 70,000 creators and publishing 200,000 types of experiential content [3] - Unity's CEO Matt Bromberg indicated that Fortnite is expected to officially launch Unity engine-based experiences next year, providing more possibilities for global players and creators [3]

PresentationMatthew BrombergCEO, President & Director [Presentation] Good morning. Good morning, Barcelona. Did you see that lineup of games? Megabonk, which just became one of the most played games ever on Steam; PEAK, a game built by just a handful of talented developers in a few weeks; Schedule I from solo dev TVGS now topping the charts; Kenny Sun and Friends' BALL x PIT, which sold over 300,000 copies in 5 days; or Tainted Grail: The Fall of Avalon; Blue Prince; and of course, Hollow Knight: Silksong, ...

Investors with a lot of money to spend have taken a bullish stance on Unity Software (NYSE:U).And retail traders should know.We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with U, it often means somebody knows something is about to happen.Today, Benzinga's options scanner spotted 12 options trades for Unity Software.This isn't ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Viewpoint - The collaboration between Unity and Epic Games marks a significant shift in the gaming industry, allowing developers to bring their Unity games into the Fortnite ecosystem, potentially reaching 500 million registered users and benefiting from Fortnite's creator economy [3][8]. Group 1: Collaboration Details - Unity and Epic Games have announced a partnership that enables developers to publish Unity games on Fortnite, tapping into a vast user base [3][8]. - Unity's cross-platform commerce platform will soon be integrated with Unreal Engine, providing more options for developers using Unreal Engine [8]. - The collaboration aims to promote an open and interoperable future for video games, with both companies emphasizing the importance of openness and choice for mutual growth [9][10]. Group 2: Market Impact - Epic Games' Fortnite has over 500 million registered users, making it one of the largest UGC ecosystems globally, second only to Roblox [9]. - In 2024, 70,000 creators are expected to participate in UGC creation, with a total revenue share of approximately $352 million (about 2.5 billion) distributed to creators [9]. - The partnership is seen as a strategic move to reduce competition and prevent third-party interference in the gaming market [9]. Group 3: Company Performance - Unity reported a total revenue of $470 million for Q3 2025, a year-on-year increase of 5%, despite a net loss of $127 million, indicating a loss rate of 27% [11]. - The revenue growth is attributed to the performance of subscription services and advertising networks, suggesting a positive trend in Unity's transformation efforts [11].

Core Viewpoint - The collaboration between Unity and Epic Games marks a significant shift in the gaming industry, potentially positioning Epic Games as the ultimate winner due to its control over distribution channels and the active user base of Fortnite [1][4]. Group 1: Collaboration Details - Unity and Epic Games have announced a partnership that allows Unity games to be published within the Fortnite ecosystem, reaching over 500 million registered users [4][5]. - The collaboration includes integrating Unreal Engine support into Unity's cross-platform commercial system, providing developers with more options for managing pricing and promotions [4]. - The partnership aims to promote an open and interoperable future for video games, with both companies emphasizing the importance of collaboration in the gaming ecosystem [5]. Group 2: Market Impact - Epic Games' Fortnite is one of the largest user-generated content (UGC) ecosystems globally, with over 500 million registered users, second only to Roblox [5]. - In 2024, approximately 70,000 creators are expected to participate in UGC creation, with a total revenue share of around $352 million (approximately 2.5 billion) distributed to creators [5]. - The collaboration is seen as a strategic move to fend off potential competition and to enhance market presence, as both companies are currently in a stalemate phase [5][6]. Group 3: Company Performance - Unity reported a total revenue of $470 million for Q3 2025, a year-on-year increase of 5%, despite a net loss of $127 million, reflecting a loss rate of 27% [6]. - The revenue growth for Unity is attributed to the performance of its subscription services and advertising network, indicating a positive trend in its business transformation [6].

Summary of Unity Software Conference Call Company Overview - **Company**: Unity Software (NYSE: U) - **Event**: Unite 2025 Conference - **Date**: November 19, 2025 - **Location**: Barcelona Key Points Industry Insights - Unity powers **70%** of the top mobile games globally and represents **one-third** of this year's hit games on Steam [110][111] - The gaming industry is experiencing growth, but challenges persist, including high-profile studio closures and increased marketing costs [111] - Unity emphasizes the importance of gameplay innovation over mere graphical enhancements [111] Product Development and Features - Unity is focusing on three phases of game creation: **develop, deploy, and grow** [111][112] - Introduction of **Unity Core Standards** to enhance security and reliability for third-party tools [112] - **Unity 6** aims to improve performance, stability, and upgradeability, with a focus on production verification [113][125] - New **Unity Studio** tool launched to facilitate collaboration for non-gaming customers [114][128] - **Unity AI Gateway** to be introduced in 2026, allowing verified third-party agents to interact with the editor securely [115] Partnerships and Collaborations - Unity has partnered with **Konami** to develop the game **Survival Kids**, which serves as a production verification exercise [113][136] - Collaboration with **Epic Games** announced, allowing Unity developers to publish games directly into the **Fortnite** ecosystem [119][120] Game Development Trends - Emphasis on rapid development cycles, with examples of small teams achieving significant success, such as **Peak**, which sold **10 million copies** shortly after launch [130][132] - Unity's commitment to improving build times, with examples showing reductions from **four hours to two** and **90 minutes to 30** [126] Awards and Recognition - Unity games have received numerous awards, including the **Games for Impact** award at Gamescom [57][59] - The **17th annual Unity Awards** are upcoming, celebrating the achievements of developers using Unity [63][64] Future Directions - Unity is committed to enhancing cross-platform development and simplifying the game creation process [94][116] - The company aims to support developers in player acquisition and monetization through tools like **Unity Vector AI** [116] Notable Games and Developers - Highlighted games include **Hollow Knight: Silksong**, **PGA Tour 2K25**, and **Thank Goodness You're Here** [145][140][62] - Unity's tools have enabled diverse game genres, showcasing the platform's versatility [144] Conclusion - Unity is focused on being a partner to developers, providing tools and support to help them succeed in a competitive gaming landscape [111][122]