David Rosenthal: belief

Transcript context

…No, it's the same way that Netflix draws its power. By having the largest subscriber base, it has the lowest per subscriber costs to produce content. Yup, or AWS—same deal. I think there are switching costs. That might be the most directly powerful here. If you're PUBG or you're any game that's built on Unreal, you have no choice except to continue running on Unreal. You're not going to spin up something on your own. You could maybe try and switch over to Unity, but that's going to be very, very difficult, and not going to have the same types of features that you need. We've leaned on this a few times, and obviously, it’s a private company so the financials aren't public, but it's fair to assume that the Unreal Engine on its own does about $1.5 billion a year in revenue. This thing that lots of developers are pretty locked into because they committed, and it was a good decision too. We're not saying that they should have picked anything else because basically, if you're building a mobile game that's really pretty simple, you should be using Unity. And if you're building a broader cross-platform 3D complex game—especially one that requires meaningful physics—you should be using Unreal. They're generating this $1 billion, $2 billion, (call it) $1.5 billion alone from that engine business.…

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