Unity has scrapped the controversial fees it charged game developers, with the game engine maker saying it will focus on seat-based subscription fees (i.e. annual payments for each person who uses the software in a studio), but there will be price increases for Pro and Enterprise users.
The company announced the runtime fees a year ago, initially planning to make developers pay a fee each time someone downloaded their game after a certain threshold was reached. The backlash was swift and fierce, with some industry insiders suggesting that it would make Unity unprofitable for indie developers. Many developers, some of whom had been making games with Unity for years, were outraged by the sudden change, and some threatened to abandon the engine.
Unity apologized a few days later and made some changes to its runtime fees. But the policy was a near disaster for the company. Unity’s CEO and president, John Riccietti, left through the back door the following month. In November, Unity laid off 265 employees as a result of a contract with Weta Digital, amid the company’s ill-fated attempt to squeeze more revenue out of developers. Two months later, Unity announced it would lay off 1,800 people, about a quarter of its workforce.
Matt Bromberg, who took over as CEO in May, wants to rebuild trust (or solidarity) with developers by doing away with the hated pricing model. Runtime fees are being eliminated immediately. Unity Personal plans will remain free for developers with less than $200,000 in revenue and funding. And with Unity 6 and later, due for release later this year, developers will have the option to remove the Made with Unity splash screen from their games.
Meanwhile, pricing and annual revenue thresholds for Unity Pro and Unity Enterprise subscribers will change on January 1. Pro users (users with at least $200,000 in annual total revenue and funding must opt for this plan) will have to pay $2,200 per seat per year, an 8 percent increase. For Unity Enterprise, required for developers with more than $25 million in annual funding and revenue, a 25 percent increase will apply. Pricing will be customized based on a variety of factors, including the products and services Enterprise customers need.
Blomberg said that going forward, Unity will only consider raising prices annually, and developers can also continue to use their existing version of Unity under the existing terms if they don’t agree to changes to the editor software.
“With Unity as a partner, we want to deliver value at the right price, in the right way, so you can continue to build your business with peace of mind for the long term. And we believe that if we’re a good partner and provide great software and services, we’re only just scratching the surface of what we can do together,” Bromberg said in a blog post. “By eliminating game runtime fees and making these pricing changes, we can be an even better partner while continuing to invest in improving game development for everyone.”
