I don’t think Unreal and $Roblox (RBLX.US)$ are truly compet...
I don’t think Unreal and $Roblox (RBLX.US)$ are truly competitors to $Unity Software (U.US)$. Unity has a much broader ambition and product roadmap than either of those companies. And Unity is not picking a fight with $Apple (AAPL.US)$ or $Alphabet-C (GOOG.US)$. Roblox’s developers will become Unity developers.
Adults don’t want to play Roblox — and that’s okay, because the adolescent and teenage market is still powerful and monetizeable. But many of those Roblox developers will go on to become Unity developers.
Last point — agree if you compare P/S for Roblox and Unity, Roblox looks cheaper. But if you compare EV/GP, Unity is the cheaper pick. And I think EV/GP is a more reasonable valuation metric in this space.
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James Wade : Great observation on EV/GP and I agree with you. Unity is more of an enterprise SaaS company, where as Roblox is sort of, but not exactly, like Epic (engine + server + distribution + game) and Tencent's game business. I'm doing more work here, but Roblox strikes me as something new -- perhaps the first true metaverse?
fly up high : I think they can all win. I have big positions in NVDA and AMD so I'm trying to move up the stack with RBLX and U, just waiting for a good entry.
Hotbuns fly up high : Sounds like you are in some fantastic companies. Each of those will have a fat piece of our digital tomorrow.
Muriel Melber : To me, the Metaverse is not any one experience that a company can build, it’s a quilting together of all digital experiences in real time, that we can navigate and swap out of. Roblox is making an advanced virtual experience that can be found and explored in the Metaverse, but it’s not enough to meet the concept as I’ve defined it.