Why one analyst says the Unity rout is a buying opportunity

Investing.com — Unity Software shares plunged 23% after Google announced access to its interactive world model and creation engine, Project Genie, for U.S. Google AI Ultra subscribers.

William Blair analyst Dylan Becker defended Unity amid the selloff, suggesting market fears about competitive threats to Unity’s Create business are overlooking key advantages of Unity’s platform.

“To us, the price reaction is further evidence of the ’shoot first and ask questions later’ fears attributable to AI uncertainty that have weighed on sentiment throughout the overall software space in recent months,” Becker wrote.

Unity’s engine is currently used by approximately 70% of all mobile games. Becker highlighted the platform’s complexity and sophistication, including AI capabilities developed in recent years, and its ability to support the full lifecycle of mobile game development in a unified platform.

The analyst emphasized Unity’s platform-agnostic approach, allowing developers to code once and deploy across more than 20 different platforms. He also pointed to Unity’s cost-effective monetization model, where most users utilize free tiers until reaching $200,000 in annualized revenue.

Becker noted that Google AI Ultra subscriptions start at $250 per user per month, which exceeds Unity Pro’s $210 monthly subscription cost, despite Unity offering greater platform depth and technical capabilities.

The analyst suggested the continued democratization of creative tools could expand the total addressable market for creative professionals while increasing reliance on runtime, discovery, and monetization tools.

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