Unity Software (NYSE: U) and Matterport (NASDAQ: MTTR) aren't usually considered competitors. Unity's eponymous game engine powers more than half of the world's mobile, console, and PC games. It also provides additional advertising, multiplayer, and analytics tools. Matterport develops 3D spatial scanning software which creates "digital twins" of physical locations and stores them on a cloud-based platform. It also sells 3D cameras, which enable customers to scan their own locations.

But over the past two years, Unity expanded into Matterport's backyard with its own 3D scanning and digital twin tools. Could that strategy, which is part of its broader diversification away from the gaming market, crush Matterport and make Unity a more promising long-term investment?

Image source: Getty Images.

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Source Fool.com