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Technology
Screentime


UNITY OVERHAULS CONTROVERSIAL PRICE HIKE AFTER GAME DEVELOPERS REVOLT

Maker of video-game development tools backtracks after customers threaten
boycott

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By Jason Schreier
September 19, 2023 at 4:57 AM GMT+12

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2:08

Video-game tool maker Unity Software Inc. said Monday it’s backtracking on major
aspects of a controversial new price hike, telling staff in an all-hands meeting
that it’s now considering changes including a cap on potential fees.

Unity, which operates and licenses a suite of video-game development tools
called the Unity Engine, set off a firestorm last week when it announced plans
to charge customers for every new installation of their game after a certain
threshold. The decision triggered widespread protests, leading several
video-game makers to say they would boycott Unity until the policy is changed.



Under the tentative new plan, Unity will limit fees to 4% of a game’s revenue
for customers making over $1 million and said that installations counted toward
reaching the threshold won’t be retroactive, according to recording of the
meeting reviewed by Bloomberg. Last week, Chief Executive Officer John
Riccitiello delayed an all-hands meeting on the pricing changes and closed two
offices after the company received what it said was a credible death threat.



The company apologized to customers on Sunday and said it would be making
changes to the pricing policy.





Marc Whitten, a Unity executive, said the company hasn’t yet announced the
latest changes because executives are still running them by partners and don’t
want to repeat last week’s communications debacle, which led to several
clarifications.

One of the most controversial elements of the policy concerned how Unity would
track installations of its software. Although the company first said it would
use proprietary tools, Whitten said Monday management will rely on users to
self-report the data.

In the meeting, Riccitiello emphasized that the new policy is designed to
generate more revenue from the company's biggest customers and that more than
90% of Unity users won’t be affected. Several employees asked during the meeting
how Unity would bounce back from what appeared to be a breach of trust.
Executives said the company will have to “show, not tell” and handle future
communications more carefully.

“I don’t think there’s any version of this that would have gone down a whole lot
differently than what happened,” Riccitiello said. “It is a massively
transformational change to our business model.”

But, he acknowledged, “I think we could have done a lot of things a lot better.”


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