Why Unity Felt the Need to “Rush Out” its Controversial Install-Fee Program
Freeman writes:
https://arstechnica.com/gaming/2023/10/behind-the-scenes-of-unitys-rushed-out-install-fee-program/
It's been over a month now since Unity partially backtracked on its controversial proposed "pay per install" fee structure, a trust-destroying saga that seems to have contributed to the retirement of Unity CEO John Riccitiello. Now, a new report highlights some of the internal divisions over the "rushed-out" policy introduction and provides new insight into what may have been motivating the company to even attempt such a plan.
Business-focused site MobileGamer.biz cites multiple "sources from inside Unity and across the mobile games business" in reporting that Unity received some significant pushback from senior-level managers before rolling out its initial fee-restructuring plans. "Half of the people in that meeting said that this model is too complicated, it's not going to be well-received, and we should talk to people before we do this," one anonymous source told the site. "It felt very rushed. We had this meeting and were told it was happening, but we were not told a date. And then before we knew it, it was out there."
After the negative reaction to that initial plan, Unity reportedly considered a modification that would take up to 4 percent of revenue from the largest Unity publishers-slightly under the 5 percent charged by the Unreal Engine. The final policy knocked that cap down to 2.5 percent only after the extent of the backlash became clear.
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Despite bringing in over $1.8 billion in revenue in the 12 months ending in June 2023, Unity was nearly a billion dollars away from profitability during that same period, thanks in large part to a wave of expensive acquisitions. The perilous financial situation was reflected in Unity's tumultuous stock price, which grew from a 2020 IPO price of $68 a share to a peak of nearly $200 a share in late 2021, only to tumble to $37 a share by the beginning of September.
Previously:
Unity CEO John Riccitiello is Retiring, Effective Immediately 20231011
Unity Dev Group Dissolves After 13 Years Over "Completely Eroded" Company Trust 20230927
Unity Makes Major Changes to Controversial Install-Fee Program 20230925
EU Game Devs Ask Regulators to Look at Unity's "Anti-Competitive" Bundling 20230923
Unity Promises "Changes" to Install Fee Plans as Developer Fallout Continues 20230918
Developer Dis-Unity 20230915
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