Unity Software (U +13.54%) is the company behind one of two major 3D game engines on the market, the other being Epic Games' Unreal engine. However, Unity has established itself as the industry leader: Over 71% of the top 1,000 mobile games were built on its platform, and 94 out of the top 100 game develop studios rely on Unity's technology to create and monetize interactive 3D content.
In this Backstage Pass video, which aired Sept. 27, 2021, Motley Fool contributor Jose Najarro shares his thoughts on Unity, and why the company should be a long-term winner.
Jose Najarro: I'm going to talk about Unity, another favorite of mine. We've talked about, again, virtual reality, we've talked about augmented reality, and we've also talked about, I want to say, metaverse and machine learning.
Unity, again, one way or another, hits all these markets. For those that are not familiar with Unity software, it's pretty much a game engine platform. If you're developing some form of game, you're most likely using Unity. I believe over 50% of mobile games right now are being made through this platform, and a good portion of console games.
Right now, a good user of augmented reality and virtual reality is the gaming industry. If you want to create some form of augmented and virtual reality game, you come to Unity and develop with the tools that they have. Some other things that people might not be familiar is Unity is focusing on outside the gaming. One of the things is, I think, Toby, it was you with the Microsoft HoloLens, where you can put on some kind of glasses and see some form of instructions. You can use Unity to create those instructions. You need some place to develop that model. Here you can use it, for example, you can develop some form of training.
Another great tool is in the artificial intelligence and machine learning. The way most machines learn are through some form of data. Data is super, super important and usually is super expensive. For example, in the autonomous vehicle market right now, one of the lead players out in that market is because they have a huge amount of in-road data. But what if you want to make data cheap? What if you want to make these simulations not needed in the real world? You can create some form of fake world inside of Unity. For example, you can create like a traffic car world where now you're collecting multiple data points at once, and you can use those data points a lot cheaper than having 1,000 cars on the road, now you have 1,000 cars in online digital world, and you'll be able to collect that data a lot cheaper and a lot faster.
It's helping a lot with the form of simulation in robotics, which is used for artificial intelligence, for our machine learning, and for automation. Some other things is, I want to say in the shopping world. There's a few applications out right now that if you want to see how a certain product fits, I want to say, in your living room or in your backyard, you can just download that application and they have the product, and you can already use your phone to see how that real life item would look in your living room or wherever.
Unity, I think is another one that it doesn't matter who the real winner is in the advertisement in the augmented or the virtual reality top gamer. I do believe they're going to be using Unity in one way or another.
