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submitted 11 months ago by simple@lemm.ee to c/games@lemmy.world

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[-] TranscendentalEmpire@lemm.ee 19 points 11 months ago

A lot of the wealth created by venture capital and the service economy were only ever possible with the help of what is essentially free money. With the increase in interest rates and the collapse of a major venture capital bank, those corporations dependent on low interest payments are going to collapse as well.

As interest rates climb and venture capital dries up, the companies who were just scraping by, or dependent on debt loading during development have had their runway cut short.

We are getting to the point where companies aren't going to be utilize fronting a huge amount of debt as a strategy for long term growth.

Unity looks to be one of the companies who wanted to utilize the slow boil tactic perfected by the likes of Google or Amazon. Where they front the cost of tons of free and convenient services, hoping that companies become dependent on them, slowly creating fees over time until they become profitable.

If I were a guessing guy, they've hit the end of their run way, and have failed to secure a new injection of capital sufficient enough to make the payments on their loans. Likely their options have come to find a way to make your payments, or you'll be giving your entire operation to a bank.

this post was submitted on 14 Sep 2023
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