Macquarie lowers Unity to Underperform, says cost cuts won’t mask ‘disarray’

As previously reported, Macquarie analyst Tim Nollen downgraded Unity to Underperform from Neutral with an unchanged price target of $20. The firm is concerned about the scope of reorganization the company is currently undertaking, which includes key ironSource departures after the ad tech merger has underperformed, the analyst tells investors. In addition, the firm expects a delay in game engine monetization until 2025 due to likely lower Unity seat licenses as game developers have laid off staff as well and it sees delayed revenue upside from price increases and runtime fees until after Unity 6 launches.