2024 Unity Gaming Report Highlights Game Studios’ Continued Resilience As They Boldly Stretch Resources Amidst Shifting Market Forces
Unity releases the 2024 Unity Gaming Report at the Game Developers Conference 2024, highlighting game developers' adaptation to economic challenges through AI adoption, revenue diversification, and multiplayer and multiplatform investment. The report reveals an increase in multiplatform games, growth in multiplayer gaming revenue, and the use of AI to improve workflows.
Positive
Game developers are strategically adapting to economic challenges by leveraging AI tools, diverse ad strategies, and focusing on multiplayer and multiplatform games.
Studios are investing in multiplatform and multiplayer development to maximize reach and engagement, with a 40% increase in multiplatform games since 2021.
Multiplayer gaming revenue grew by 10% ($2.3B) in 2023, and games with multiplayer features saw a 40.2% increase in monthly active users.
Revenue from in-app advertising increased by 26.7% year over year, with games using rewarded videos and offerwall experiencing improved retention rates.
62% of studios are using AI to enhance workflows, particularly in content creation and animation, leading to improved delivery and operations for 71% of developers.
The gaming industry is a significant segment of the entertainment sector and Unity's report provides valuable insights into the current trends and strategies adopted by game developers. The shift towards multiplatform and multiplayer games is a strategic move to expand market reach and user engagement. This trend reflects a broader industry shift towards games as a service model, where continuous engagement and in-game monetization become increasingly important revenue drivers.
From a market perspective, the growth in multiplatform games and the success of multiplayer games despite economic challenges suggest a robust demand for interactive entertainment that transcends traditional platform boundaries. This growth, particularly among smaller studios, indicates a democratization of game development, where access to advanced tools like Unity enables a more level playing field. The reported increase in in-app advertising revenue also highlights the evolving monetization strategies that developers are employing to sustain revenue streams in a competitive market.
Unity's advancements in AI tools for content creation and animation are noteworthy, as they represent a broader trend of AI integration across various industries. The reported 62% of studios utilizing AI to improve workflows speaks to the increasing reliance on technology to maintain efficiency and competitiveness. The use of AI can significantly reduce the time and resources required for content creation, which is particularly valuable in an environment where developers are expected to do more with less.
Furthermore, the significant performance enhancements anticipated with the release of Unity 6 will likely facilitate the creation of more complex and scalable games. This is important for developers aiming to meet the rising expectations of gamers for high-quality, immersive experiences. The enhancements could also lead to broader adoption of the Unity Engine, potentially impacting Unity's market share and investor sentiment towards the company's stock.
Unity's position as a leading platform for game development is reinforced by the data presented in their gaming report. The financial implications for Unity and its stakeholders are multifaceted. On one hand, the increase in multiplatform and multiplayer game development could drive demand for Unity's services and, by extension, its revenue. On the other hand, the reliance on in-app advertising as a revenue source for developers could be sensitive to shifts in consumer sentiment and regulatory changes regarding digital advertising.
Investors should consider the long-term implications of these trends. The growth in multiplayer gaming revenue and the reported 40.2% increase in monthly active users for mobile games with multiplayer features indicate a strong user engagement metric, which is a positive sign for sustained revenue potential. However, the gaming industry is known for its cyclicality and rapid changes in consumer preferences, which could introduce volatility to Unity's financial performance.
03/18/2024 - 09:11 AM
Developers Are Adapting With AI Adoption, Revenue Diversification, And Increased Multiplayer And Multiplatform Investment
Unity 6, Unity’s Next Major Software Release, Will Graduate from Beta this Fall With Significant Performance Enhancements to Make it Easier for Developers to Create Games of Any Scale
SAN FRANCISCO --(BUSINESS WIRE)--
Unity (NYSE: U), the world’s leading platform of tools for creators to build and grow real-time games, apps, and experiences across multiple platforms, released the 2024 Unity Gaming Report , revealing that while 2023 was a year marked with persisting economic headwinds, game developers are strategically navigating the challenges and successfully adapting to changes in technology, the economy, and player habits by doing more with less. Even with tightened budgets, studios are still experimenting, investing and taking calculated risks to maximize efficiencies and resources. They are focused on key opportunity areas including: boosting productivity with AI tools, maximizing revenue with diverse ad strategies, and doubling down on multiplayer and multiplatform games to reach as many players as possible and keep them playing longer. The report’s findings draw on data from approximately five million Unity Engine developers and more than 342 billion ad views. The analysis also integrates insights from polls, surveys, and Unity’s broad community of industry veterans, studio partners, and in-house experts to enable better strategic planning for studios.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240318553373/en/
2024 Unity Gaming Report (Graphic: Business Wire)
The 2024 Unity Gaming Report reveals that amidst persistent economic uncertainty, studios are simultaneously prioritizing conservative spending and being bold – they are stretching resources and willing to take on some risk, in order to strengthen their businesses and shore up ROI. Key findings from the report include:
Despite added risk, complexity and costs, more studios of all sizes are investing in multiplatform and multiplayer development to maximize reach and engagement.
Since 2021, the number of multiplatform games have grown 40% , with even small studios that previously stuck to single-platform release strategies building 71% more multiplatform games over the past two years1 .
Even as the gaming industry faced economic challenges, multiplayer games still proved tremendously successful. Multiplayer gaming revenue grew 10% ($2.3B 2 in 2023, and on average, mobile-only games containing multiplayer features saw 40.2% 3 more monthly active users than those without.
Studios are sustaining revenue and driving engagement with diverse monetization approaches. With revenue from in-app advertising (IAA) increasing 26.7% 4 year over year, studios are broadening their mix of IAA strategies, and games using both rewarded videos and offerwall are reaping an increase of 4% and 2% in Day 7 and Day 30 retention5 .
AI is helping studios work faster and more efficiently . 62% of studios turned to AI to improve their workflows, particularly for content creation and animation6 . 71% of those developers acknowledged that using AI say has improved their delivery and operations7 .
To view the full analysis and additional insights, download the 2024 Unity Gaming Report .
“This year’s report underscores game developers’ spirit of resilience as they navigate the evolving gaming landscape,” said Marc Whitten, Chief Product and Technology Officer of Unity. “Our job at Unity is to help them with the tools and solutions to tackle the challenges of game development. Whether it's improving performance, iteration speed, and multi-platform development in the Unity engine, accelerating multiplayer workflows, or expanding AI capabilities, we are focused on the areas game developers care about and on delivering the most value we can.”
During GDC, Unity will be highlighting the technical advancements in their core products as well as celebrating achievements from those in the Unity creator community:
Unity 6, Unity’s next major software release, will be launching in general availability this fall, and the Preview will launch in May. With Unity 6, developers will be able to power larger complex scenes, develop multiplatform games directly in the Editor and create dynamic AI and XR experiences, all with improved speed and runtime performance. Learn more about Unity 6 here .
Unity Muse, Unity’s AI-powered platform for accelerating real-time 3D and game development, will soon be fully integrated in the Editor, allowing developers to bring AI directly to where they work. Additionally, improvements have been made to the Texture generative models and outputs and AI-generated sound effects will be a new feature available to subscribers soon. Muse is in early access and is available for a free trial. Learn more about Muse here .
Megacity Metro , the latest multiplayer sample project from Unity, is now available for download. Powered by Unity’s Data Oriented Tech Stack (DOTS) and Unity Cloud’s multiplayer gaming services, Megacity Metro showcases performant gameplay and the expanded capabilities of our latest tech to deliver accelerated multiplayer creation and scale. Learn more about Megacity Metro here .
Unity recently announced Daily Rewards, a new and unique offering for advertisers on Unity’s offerall product Tapjoy. Daily Rewards gives players rewards for every task they complete in an app, encouraging users to return each day to earn more rewards as they progress. Additionally, Unity also recently announced that Unity Ads and ironSource Ads will soon be available as bidders on AdMob mediation platform and Google Ad Manager (GAM). Learn more about Unity’s monetization solutions here .
On the GDC showfloor, Unity will feature a Creator Lounge, spotlighting eight games including first hands-on with Radical Forge’s recently announced Southfield , and first hands on with an updated version of Angry Birds VR: Isle of Pigs from Resolution Games. Watch this trailer for more amazing games that are made with Unity.
About Unity
Unity [NYSE: U] is the world's leading platform of tools for creators to build and grow real-time games, apps, and experiences across multiple platforms, from mobile, PC, and console, to spatial computing. For more information, visit Unity.com .
Forward-Looking Statements
This publication contains “forward-looking statements,” as that term is defined under federal securities laws, including, in particular, statements about Unity's plans, strategies and objectives. The words “believe,” “may,” “will,” “estimate,” “continue,” “intend,” “expect,” “plan,” “project,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Further information on these and additional risks that could affect Unity’s results is included in our filings with the Securities and Exchange Commission (SEC) which are available on the Unity Investor Relations website. Statements herein speak only as of the date of this release, and Unity assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this publication except as required by law.
1 Source: Editor Analytics
2 Source: 2023 Statista Digital Market Insights report, 2023
3 Source: Unity Analytics and App Store
4 This data reports on over 200 games using Unity Ads, IAP, and analytics solutions.
5 Source: Unity Analytics Bigquery, Tapjoy BigQuery
6 Source: CintTM survey 2023, 300 respondents
7 Source: CintTM survey 2023, 300 respondents
View source version on businesswire.com: https://www.businesswire.com/news/home/20240318553373/en/
Shirley Chu
Shirley.Chu@unity3d.com
Source: Unity
How are game developers adapting to economic challenges according to the 2024 Unity Gaming Report?
Game developers are strategically navigating challenges through AI adoption, revenue diversification, and multiplayer and multiplatform investment.
What is the growth percentage of multiplatform games since 2021 based on the report?
There has been a 40% increase in multiplatform games since 2021.
What was the growth rate of multiplayer gaming revenue in 2023?
Multiplayer gaming revenue grew by 10% ($2.3B) in 2023.
How much did revenue from in-app advertising increase year over year?
Revenue from in-app advertising increased by 26.7% year over year.
How many studios are using AI to improve workflows according to the report?
62% of studios are using AI to enhance workflows.
What percentage of developers stated that using AI has improved their delivery and operations?
71% of developers acknowledged that using AI has improved their delivery and operations.
