I think you missed a key point in the GP's comment. This HAS to be about competing in use for movies, not game development. Unreal has made huge strides in being used for green screen backgrounds rendered in real time and I don't know what else.

This feels like a huge whiff to me, Unity needs to focus on games and just make money there. Games is a bigger market than movies at this point and there is plenty of room to grow there, especially if they can continue to make it easier for individuals/small groups to make a game in their spare time.