Unity expects to lose $30 million over Apple's App Tracking Transparency

You can put a price on privacy.

What you need to know

• Unity Technologies announced its earnings on Tuesday.
• The company said it expects to take a $30 hit in revenue because of App Tracking Transparency.

App Tracking Transparency is going to erase $30 million of Unity's business.

As reported by AppleInsider, Unity Technologies reported its earnings on Tuesday. During the earnings call, the company talked about its guidance for the rest of the year and anticipates that Apple's App Tracking Transparency will cause a $30 million dent in the company's revenue.

The estimated $30 million reduction in overall 2021 revenue remains unchanged from an appraisal Unity presented last year, reports Venture Beat. That figure is now expected to be offset with a $50 million bump in year-end guidance.

Unity generates income from developers who use its game engine to create titles like "Fall Guys: Ultimate Knockout," "Ori and the Will of the Wisps," and "Oddworld: Soulstorm." Subscriptions make up a sizable portion of the company's intake, but advertising also plays a significant role in buoying the bottom line.

In the first quarter of 2021, the software firm notched revenue of $234.8 million, up 41% year-over-year. Unity sees an addressable market of close to $29 billion across games and entertainment, including TV commercials and animated films, the report said.

App Tracking Transparency launched with iOS 14.5 at the end of April. The feature requires apps to ask a user's permission in order to track them across apps for advertising purposes.

App Tracking Transparency requires apps to get the user's permission before tracking their data across apps or websites owned by other companies for advertising, or sharing their data with data brokers. Apps can prompt users for permission, and in Settings, users will be able to see which apps have requested permission to track so they can make changes to their choice at any time.

While Apple has not yet released information on how users have reacted to App Tracking Transparency, a recent survey from analytics firm Flurry found that over 96% of iPhone owners opted out of tracking.

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