- Unity has announced the possibility of layoffs in its Q3 financial report following increased revenue.
- The company may not achieve or sustain profitability on a GAAP basis moving forward.
- Unity will reconsider its strategy if it’s unable to retain or attract customers.
In its Q3 2023 financial report, Unity announced the possibility of layoffs despite the results showing an increase of 69% in revenue for a total of $544 million. Elaborating on this possibility, the report talks about the company undergoing a CEO change and initiating a comprehensive assessment of its product portfolio to provide more value to customers.
Elsewhere in its report, it’s stated that Unity has a history of losses and may not achieve or sustain profitability on a GAAP basis moving forward. For the uninitiated, GAAP refers to “Games as a Product” and stands as the opposite of Games as a Service, otherwise known as GAAS.
Unity has limited experience operating its business at its current scale. In the report, it’s stated that past results may not indicate future operating performance. Furthermore, if the company is unable to retain its existing customers and expand its use of the platform or attract new customers, its growth and operating
results could be adversely affected, necessitating a change in strategy.
Related Content To Read Up On:
- Over 500 Devs Team Up Against Unity To Protest Against New Runtime Fee Changes
- Unity Announces Runtime Fees Will No Longer Exceed 4% Of A Developer’s Revenue
- Unity Executives Sell Thousands Of Shares Ahead Of The Highly Controversial Fees Announcement
The company came under fire earlier this year after it introduced a price increase to make it so that developers will be charged a fee based on the number of a game’s installations. While there were criteria that had to be met to be affected by this change, the general idea behind this design sparked outrage as various devs took to the internet to express their views on the matter.
Unity has since implemented some changes to its pricing plan, following the major backlash and executives selling their shares ahead of the controversial announcement. However, it seems that internal assessment protocols may lead to the company joining the layoff race in the future.
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