Unity Software (NYSE:U) 2025 Conference November 19, 2025 04:00 AM ET Speaker7Hey, everybody.Speaker12Hello.Speaker7Hello, there.Speaker12Ooh. To an eclipsed applause.Speaker7Yeah. Quite a muted applause, but it's fine. That's no problem. Welcome, everybody, to the pre-show. Don't worry, you're in the right place. Obviously, all of you are in the right place, but if you're watching us on the live stream, you're in the right place too. Hi, Aurora Demopolis.Speaker12Hi, Will Goldstone. How's it going today?Sp ...

Unity Software (NYSE:U) 2025 Conference November 19, 2025 04:00 AM ET Speaker1Hey, everybody.Speaker0Hello.Speaker1Hello, there.Speaker0Ooh. Can you expect an applause?Speaker1Yeah. Quite a muted applause, but it's fine. It's no problem. Welcome, everybody, to the pre-show. Don't worry, you're in the right place. Obviously, all of you are in the right place, but if you're watching us on the live stream, you're in the right place too. Hi, Aurora Demopolis.Speaker0Hi, Will Goldstone. How's it going today?Spea ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Attendance at GDC 2025 was lighter than previous years, but attendees showed cautious optimism, indicating a shift from a previous austerity mindset to pragmatic perseverance in a recovering industry [3][5][7] - AI's role in game development is increasingly recognized, with a significant year-over-year increase in sessions dedicated to the topic, and nearly 80% of developers expressing positive sentiments towards AI [3][8] - Capital for game development is available but scarce, with a notable decline in the number of investors actively funding gaming startups, although diverse capital structures are emerging [3][11][12] - The growth of PC and console gaming has slowed after a decade of success, with modest growth expected in the coming years, driven by international markets and demographic shifts [3][14][17] - Emerging markets, particularly in Latin America, MENA, and Southeast Asia, are identified as key growth vectors for the industry over the next five to ten years [3][20][21] - Unity remains a stable player in the engine market, while Epic Games' absence at GDC raised questions about its current strategy; W4 Games' Godot engine is gaining traction among developers [3][23][26][27] - Geopolitical tensions are affecting industry dynamics, with concerns over tariffs and international relations impacting market stability [3][28][30] - The mobile gaming sector is showing signs of recovery, with developers who survived the IDFA depreciation gaining a better understanding of the competitive landscape [3][31][33][34] Summary by Sections Attendance and Sentiment - GDC 2025 saw a fair turnout but was less busy than in previous years, leading to higher-quality conversations despite a lingering sentiment of belt-tightening [4][5][7] AI in Game Development - AI's presence in the industry is significant, with a notable increase in sessions and a majority of developers planning to utilize AI in their workflows [8][9] Capital Availability - The number of active investors has decreased, but diverse funding sources are emerging, including private equity and corporate VC [11][12][13] PC and Console Gaming - Growth in PC and console gaming has stalled, with low-single-digit growth expected; upcoming releases and demographic shifts may provide some tailwinds [14][17][18] Emerging Markets - Emerging markets are poised for growth, with regions like Latin America and Turkey becoming increasingly important for game development [20][21][22] Game Engines - Unity is focusing on stability and AI integration, while Epic Games' absence raises concerns; W4 Games' Godot engine is gaining popularity [23][26][27] Geopolitical Dynamics - Geopolitical tensions and tariff concerns are creating uncertainty in the gaming hardware market [28][29][30] Mobile Gaming - The mobile gaming market is recovering, with developers adapting to new challenges and exploring alternative distribution channels [31][33][34]