Unity buys Peter Jackson VFX studio Weta Digital for $1.6 billion

Lord of the Rings character Gollum
(Image credit: New Line Cinema)

Unity, the company behind the game engine of the same name, has entered into a definitive agreement to acquire blockbuster VFX firm Weta Digital for a hefty $1.625 billion (thanks, The Hollywood Reporter).

A New Zealand-based VFX house owned by director Peter Jackson, Weta is probably best known for the filmmaker's landmark Lord of the Rings trilogy (and the less well-received Hobbit trilogy), alongside James Cameron's Avatar and recent Marvel flicks like Shang-Chi and Eternals. Tangentially, Weta also made (and crashed) a Halo warthog that one time.

The acquisition sees Unity acquire a host of proprietary Weta tech including hair and fur simulators, water and smoke tools, facial capture systems and various renderers. All 275 Weta Digital engineers will join Unity, though Jackson's visual effects business will live on under the new name WetaFX.

"We are thrilled to democratize these industry-leading tools and bring the genius of Sir Peter Jackson and Weta’s amazing engineering talent to life for artists everywhere," said Unity CEO John Riccitiello in a statement.

It's a massive grab for Unity, though it's currently unclear what this means for Unity developers themselves. Rendering pipelines for films and games are dramatically different, so don't expect Unity games to suddenly sport Hollywood blockbuster-quality VFX. Unity's statement specifically mentions using this tech to "unlock the full potential of the metaverse", while developers have speculated that Unity wants to follow Unreal's lead in creative live visual effects for film and TV.

The mood from indie Unity developers, however, is that this move is a step away from what they need the engine to be doing. As a part-time Unity user myself I've found recent versions to be increasingly frustrating, and a set of film-quality rendering tools is little consolation for game developers still dealing with Unity's own haphazard systems.

The Unity Weta acquisition is expected to close by the end of the year.

Natalie Clayton
Features Producer

20 years ago, Nat played Jet Set Radio Future for the first time, and she's not stopped thinking about games since. Joining PC Gamer in 2020, she comes from three years of freelance reporting at Rock Paper Shotgun, Waypoint, VG247 and more. Embedded in the European indie scene and a part-time game developer herself, Nat is always looking for a new curiosity to scream about—whether it's the next best indie darling, or simply someone modding a Scotmid into Black Mesa. She also unofficially appears in Apex Legends under the pseudonym Horizon.

Read more
BRAZIL - 2021/10/12: In this photo illustration the Unity Technologies logo seen displayed on a smartphone on the background of a keyboard. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
2 years into Unity's long downward spiral, even more employees are being laid off as CEO says it's still 'stretched across too many products'
ARMY
Palmer Luckey says he wants to 'turn warfighters into technomancers' as Anduril takes over production of the US Army's IVAS AR headset from Microsoft
Microsoft Muse-generated gaming in action
'A massive, massive moment of wow.' Microsoft CEO predicts AI-generated games are a 'CGI moment' for the industry
A screenshot of Havok's physics engine, showing a metallic figure in a cave system
Havok, whose software is famed for its use in Half-Life 2 and Elder Scrolls, just showed off its updated physics engine in first YouTube trailer in over ten years
Assassin's Creed meets PUBG
Ubisoft is reportedly talking to Tencent about creating a new business entity to manage Assassin's Creed and other big games
Marvel's Avengers screen
Will another Avengers game be assembled? 'We would definitely be open to it' says Joe Russo, co-director of Avengers: Doomsday
Latest in Game Development
princeton review best game design programs 2025
The best game design schools, ranked by the Princeton Review 2025
Sharon Tal Yguado speaking at the 2025 D.I.C.E. Summit.
'These kids do not care about romance': Game devs want to know what today's teens want, and surveys say sex and romance isn't it
Palworld early access
Palworld studio's first move as a publisher is to save a struggling indie dev: 'This is the energy I want to see driving games in 2025'
Yakuza/Like a Dragon creator Toshihiro Nagoshi says his studio's new game won't be that big after all: 'it's not modern to have similar experiences repeated over and over again'
A man with a sausage-shaped head
'Calm down!' says Facepunch Studios: Garry's Mod successor s&box is getting a fan-requested sandbox mode and an alternative to 'Sausage Men'
Hellboy Web of Wyrd
Devolver has a new label dedicated to making games based on comics, films, TV shows and 'cult heroes'
Latest in News
Silent Hill f transmission trailer screenshots
Silent Hill f is not messing around – now it's been banned in Australia
MOUNTAIN VIEW, CALIFORNIA - AUGUST 22: A view of Google Headquarters in Mountain View, California, United States on August 22, 2024.
'Google must divest the Chrome browser:' DOJ renews call for Google to sell Chrome, and Android could be next
Victory screen of Big Rigs showing infamous "You're Winner" message under a three-handle gold trophy
One of the worst games ever made is coming to Steam, but we won't know how cruel this joke is until we see the price tag
Sci-fi character from Dune
Dune: Awakening promises us a breath of fresh air, skipping early access for a full launch with no monthly subscription in May
Baldur's Gate 3 Karlach concept art
'The dream of the tech industry is to sell off your company at an overinflated price and retire,' says actor behind Baldur's Gate 3's Karlach, 'And I feel that's being done with game studios right now'
assassin's creed shadows protector's armor
Assassin's Creed Shadows hits 2 million players, putting it on track to be the series' most successful game yet