Unity software is scuttling Peter Jackson's Weta FX visual effects company, which will lead to an estimated 265 jobs being eliminated.

Unity purchases Weta Digital’s visual-effects tool suite for $1.6 billion Major deal continues the slow merging of movie-creation and game-creation tools.

Unity’s acquired company, the tech assets of Weta, will be titled Weta Digital, while Peter Jackson’s Weta visual effects business will remain separate under the banner of WetaFX.

All 275 Weta Digital engineers will join Unity, though Jackson's visual effects business will live on under the new name WetaFX.

Its visual effects business will remain as a separate company called WetaFX, which is expected to become one of Unity's largest customers.

Unity has just announced its intent to acquire Weta Digital, the legendary visual effects company co-founded by Peter Jackson, for a massive $1.625 billion.