Unity's Pricing Controversy: How the Game Development Community Reacted to the Unveiled 'Runtime Fee' System

Unity, the renowned technology company behind one of the most widely used game development engines, has recently found itself at the center of a pricing controversy that has sent shockwaves through the game development community. The uproar stems from the company's announcement of a new pricing structure, which left many game developers perplexed about the potential financial implications of creating games using Unity's platform.

The Significance: Unity's pricing adjustments have prompted widespread concern among game makers who are now grappling with uncertainties about the costs associated with building and distributing their games through the Unity engine. The introduction of what Unity terms as a "Runtime Fee" has raised questions about the financial viability of developing hit games using Unity's technology.

Throughout the day, developers openly discussed the possibility of delaying their game releases to explore alternative platforms like Epic Games' Unreal Engine or other services available on the X platform (formerly known as Twitter). However, as the day progressed, Unity's executive Marc Whitten provided updates to Axios, potentially alleviating some of the concerns expressed by game creators.

The Details: The "Runtime Fee" system announced by Unity introduces charges tied to a player's installations of a game, an action that, until now, incurred no costs for developers. Under this new plan, developers utilizing Unity's free tier would be required to pay Unity $0.20 per installation once their game achieves certain milestones, such as 200,000 downloads and $200,000 in revenue. Developers subscribed to Unity Pro plans exceeding $2,000 annually would face different thresholds and lower fees. The implementation of this new fee structure is scheduled to commence at the beginning of 2024.

Controversial Aspects: Game developers were quick to voice their concerns, particularly the fear that any game experiencing a surge in installations due to events like major sales, inclusion in charity bundles, or being part of subscription services like Microsoft's Game Pass, could result in substantial Unity fees. Prominent studios, including Innersloth (creators of Among Us) and Aggro Crab, expressed worries that such fees could jeopardize their businesses.

Unity's Response: Unity has been actively working to clarify and, in some cases, revise its policies related to the fees. Initially, Unity suggested that each installation, including reinstalls, would incur multiple fees. However, Whitten later clarified that the company would only charge for the initial installation to prevent "install-bombing" by users. Additional fees may apply when a game is installed on a second device.

Furthermore, Unity clarified that runtime fees would not be imposed on game demos unless the demo is part of a download that includes the full game. Games offered for charity purposes or included in charity events would also be exempt from the fees. Whitten assured that developers would have a mechanism to inform Unity when their games are offered in such contexts.

Looking Ahead: Whitten estimated that only around 10% of Unity's developers would ultimately need to pay any fees, considering the established thresholds games must meet.

In Unity's words, their objective is to ensure a fair value exchange, enabling them to continue investing in providing game developers with the best tools to create outstanding games. Unity acknowledges the need for clarification and is actively addressing the concerns raised by the game development community, emphasizing its commitment to delivering the best possible solutions.

Do deeper https://blog.unity.com/news/plan-pricing-and-packaging-updates