The things that we do make Unity games better. And people using Unity make it really, really easy to use our other things and get that flywheel going. So if you look at our correlation between some of our other services in the engine, they’re not as tight as I would like to make sure we make it really easy for our dev’s to use our things and make our things made with Unity games even better. And that extends across, again, we talked a little bit. We’ve made progress in integrating Iron Source, but a lot of that’s getting the core stuff together. Now, getting the flywheel that we think we can do of the real synergies between the editor and the runtime and the grow business is something we are just getting kicked off. And I’m the type I want to have a weekly meeting on what’s the progress, what are we doing, why, when’s it going to be done?
And we’ve been more focused on the integration than on really getting the synergy flywheel going. And so that’s something we’re kicking off in earnest.
Luis Visoso: Yeah, Brian, as we’ve talked before, what we’re seeing is good synergies of grow within grow, Unity and Iron Source. So that’s working well. Technologies, capabilities, that data that’s growing well. But as Jim is saying, they create to grow is where we need to sharpen the pencil and do a better job going forward.
Richard Davis: Great. And next is Clark Lampen at BTIG.
Clark Lampen: Thanks very much. I’ve got two, please. Jim, maybe we can start big picture with sort of a view of the engine market. I understand you’ve only been with Unity for a short period of time. But one of the big questions we get from investors around that piece of the business is how you start to close the gap between really high and fairly dominant developer share and your revenue share at present. Is a variable rate model like runtime really the key to unlocking that upside? Or are there other adjustments that as you look at that business you think need to be made to ensure it can grow?
James Whitehurst: Well, I think there’s a lot. And by the way, we haven’t even started on the industry side, which I would actually argue is a larger market than the gaming market for us. But we can come back around on that. So first off, the gaming market is a lower margin market. So when you started at one price point and you want to change it, you’re obviously going to get some backlash. So the way I’d rather think about it is if you think about development all the way through to operating a game is a hundred billion dollar market, right? We’re a very, very, very small, less than 1% share of that. So our ability to do things like whether it’s driving to DevOps or automated testing or if you think about other things that a developer shop, especially teams of developers do, thinking about kind of security, thinking about compliance, identity management.
There’s a whole set of things where we’re not raising price on what we’re doing, but we are looking at the costs around what someone does when they’re working with us. He has a tremendous opportunity on the development side and then obviously on the operate side, continuing to look for places where, frankly, we have a right to win because of the strength of our editor and runtime and our ability to understand what people are doing and how and the uniqueness around that. I think the runtime fee is important for multiple reasons. One is internally to have people recognize there’s value in the runtime. And so if nothing else, it makes it much easier internally managerially saying we need to drive more velocity into the runtime and the feature functionality around that.
I know you can kind of conceptually say you do it, but it’s much easier when there’s actually revenue associated with it. And frankly, I think it’s easier to explain to customers that you’re paying for something, but look at the value and now we can accelerate value around that. So I think making the runtime not like a second order citizen in how we think about monetization is important. I think going forward, thinking about especially on the industry side where run times themselves, whether it’s exact runtime or more broadly what that looks like in feature velocity and that, having a price around that and how you think about that as you scale out, I think it’s important. So we can get into the specifics around the runtime pricing and kind of what model and what types of games, etc., etc.
But I think the concept that the runtime has value and so we have a price on the runtime is healthy all around for how we run the business.
Clark Lampen: Understood. And I guess there’s a lot in flux, I guess, as you guys are exploring sort of interventions, as you mentioned in the shareholder letter. One of the things that does seem to be consistent moving forward in terms of focus is AI. I’m curious if you could give us an update on the Muse and Sentis products. How is the closed beta gone so far? When do you think realistically those tools could exit beta? And if you have any thoughts around commercialization that you’d be willing to share on this call, it would be appreciated also. Thanks.
James Whitehurst: Well, my first reaction will be, how about coming to Amsterdam next week to Unite? And you will hear a whole lot about that and kind of the things we’re doing more broadly. I mean, honestly, I mean, Luis, if you want to comment, but I think given everything we’re saying at Unite, we don’t want to kind of front run that here today. So stay tuned and or come join us in Amsterdam.
