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Unity’s Runtime Fee has officially been laid to rest. Exactly one year after its controversial introduction, new CEO Matt Bromberg has left his mark on the company by ending the turmoil and returning to the basics.
At a great cost of an industry-wide backlash, a boycott of its advertising business, the departure of former CEO John Riccitiello, a loss of trust, and a series of layoffs and company restructuring, Unity has decided to backtrack on its previous changes.
Although attempts were made to reverse some alterations, discontent and confusion still lingered among users.
A Return to ‘Democratisation’
Unity is now going back to its fundamental business philosophy of “democratisation,” a core value that initially endeared it to the development community. This, alongside the necessary investment to establish market dominance.
However, this major shift comes with a price. Pro users will see an 8% subscription price hike to $2,200 annually per seat, while Enterprise customers will face a 25% increase. These changes will take effect on January 1st, 2025.
While this may not completely solve the issues, Unity has taken the necessary steps to prevent a critical situation, even though some scars may never fully heal.
“I believe the future looks brighter after a challenging 12 months for the company, and that benefits us all.”
John Wright
It is worth noting Bromberg’s initial statement of “after deep consultation with our community, customers, and partners,” indicating a shift from the lack of consultation preceding the original announcement. Sources close to the matter stated that Unity did consult with a few companies regarding the Runtime Fee beforehand, receiving primarily negative feedback. Despite this, the company proceeded with the decision.
Revisiting the concept of democratisation, the essence of Unity which may be seen as a marketing tactic, is a powerful one. Bromberg admitted that the company “cannot pursue that mission while in conflict with our customers,” acknowledging the misstep made in prioritizing profits over relationships.
“About Time!”
The consequences of the Runtime Fee are already apparent, with notable shifts in the industry. Before the announcement, Second Dinner, the developer behind the Unity-powered Marvel Snap, unveiled a partnership with W4 Games and switched to the open-source engine Godot for its upcoming major project.
What does the industry think now? John Wright, VP of mobile games at Kwalee, considered Unity’s decision to abolish the Runtime Fee as “arguably the most obvious move of the year.”
Expressing optimism for the new leadership, he believes in the company’s efforts to restore lost trust and goodwill following the tumultuous period.
“This also demonstrates the strength of the developer community when united, showcasing what can be achieved. Hopefully, similar victories can be witnessed in other areas of the industry,” he remarked.
Rebuilding Confidence
Susan Cummings, CEO of Tiny Rebel Games, welcomed the news as a positive indication that the new leadership at Unity has heeded the community’s concerns regarding the Runtime Fee adjustments.
“To regain trust, Unity must exhibit a consistent pattern of making sound decisions and maintaining transparency.”
Susan Cummings
She noted the surprising delay in reversing the fee, which had already caused significant harm.
“Unity remains a vital tool for many developers, but restoring goodwill is a challenging task once it has been lost,” she added.
“To rebuild trust, Unity must establish a track record of making correct decisions and practicing transparency, especially during a turbulent time in the industry. This is essential for developers to regain faith in the platform and continue investing their resources into it.”
Ben Cousens, chief strategy officer at ZBD, criticized the Runtime Fee as a disastrous decision by Unity, foreseeing its inevitable demise.
“The game industry, particularly mobile gaming, is currently facing challenges and could not withstand such fee structures,” he commented.
“Unity’s new direction is a step in the right direction, and hopefully, next year will bring improvements for game companies, making it easier for studios to absorb the announced fee increases per seat. However, this scenario underscores the significant influence Unity holds and the risks associated with industry dependence on a single provider.”
While Unity has regained some trust, the question remains: will it be enough?
Have thoughts on Unity’s decision? Reach out to head of content Craig Chapple at craig.chapple@steelmedianetwork.com and deputy editor Paige Cook at paige.cook@steelmedianetwork.com.
