{"id":6337,"date":"2018-02-01T14:37:35","date_gmt":"2018-02-01T19:37:35","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/unity-a-unicorn-powering-the-video-game-economy\/"},"modified":"2018-02-01T14:45:31","modified_gmt":"2018-02-01T19:45:31","slug":"unity-engine-a-unicorn-powering-the-video-game-and-vr-ar-economy","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/unity-engine-a-unicorn-powering-the-video-game-and-vr-ar-economy\/","title":{"rendered":"Unity Engine: A Unicorn Powering the Video Game and VR\/AR Economy."},"content":{"rendered":"

The worldwide video gaming market in 2017 is estimated to be worth $106 Billion, and is anticipated to grow to $143B by 2020. Of this market, the fastest growing segment is mobile gaming, estimated to be worth $42.5B.<\/span><\/p>\n

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Fueling this market, is year over year growth in the number of video games being released. Historically, major video game studios such as Ubisoft, Nintendo, Electronic Arts, etc. released games developed on inhouse software. However, the emergence of accessible programming platforms called \u2018Game Engines\u2019 mixed with reduced cloud computing costs have made video game development more accessible and rapid to the masses. This accessibility has led to the emergence of indie-gaming companies that produce and publish games without a major game publisher.\u00a0<\/span><\/p>\n

Today, a wide spectrum of indie programmers to established entertainment companies are utilizing game engines to build video games, mobile apps, and VR\/AR experiences. According to a McKinsey Report, the firm estimated that the game engine industry was growing between 21-36% per annum from 2014-2016. (2)<\/strong><\/span><\/p>\n

Unity Engine has emerged as a winner in the game engine market, and has a unicorn valuation to prove it. According to TechCrunch, in 2017 the privately owned Unity raised $400M from Silver Lake (PE Firm) at a reported $2.6 Billion valuation.\u00a0(3)(5)<\/strong><\/span><\/p>\n

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(4)<\/strong><\/p>\n

According to Unity\u2019s website, Unity now controls 45% of the global game engine market (Nearly 3x any competitor). Other data points continues to support this industry dominance. According to Unity\u2019s website:<\/span><\/p>\n