Jefferies wonders if Unity ‘backtracking incoming’ amid backlash

Jefferies says “the news has continued to flow in” and the firm has “lost track as to the number of negative public statements” since Unity (U) raised prices and introduced a new monetization model. A boycott was started on Friday by 19 mobile gaming companies that the firm estimates to be about 7% of downloads in developed markets, AppLovin’s (AAP) CEO issued a public statement suggesting a change in pricing, and Unity has now announced that they have heard the community and will provide an update in “a couple of days,” notes the analyst, who questions whether “backtracking (is) incoming?” Unity “needs to better monetize its engine” and “we don’t believe game developers disagree,” but “there are several sources of backlash,” says the firm, which keeps an Underperform rating and $29 price target on Unity shares.