U - Unity Backtracks on Fees to Stop Developer Exodus
2023-09-27 06:10:00 ET
Game engine developer Unity (NYSE: U) tested its ability to extract more money from developers earlier this month with a new fee layered on top of its existing subscriptions. The company even targeted its army of small-time users who have been happily using the company's free plan. Under the new fee structure, that free plan would have become a lot less free.
Unity's plan was to charge developers a "Runtime Fee" starting in 2024. Once certain revenue and installation thresholds were met, Unity would charge up to $0.20 each time a game was installed. There were a few glaring problems with this scheme. For one, games available under subscription services like Xbox Game Pass could be a disaster for developers if they had to pay a fee for every unique user. Free-to-play games with minimal revenue per user would face similar issues.
The new fee did not sit well with developers. Unity intended to apply the fee retroactively to already released games, meaning that developers with successful games could be hit with a big bill come January. If Unity's goal was to anger its customer base as much as possible, it hit the nail on the head.
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Unity Backtracks on Fees to Stop Developer Exodus