Discussion on Handling Game Engines with Rez Graham and Bryant Francis: an episode from our Podcast (Episode 42)
In late 2023, Unity, a leading game engine provider, announced a significant change to its pricing model. The company planned to charge developers for using its engine on a per-user-install basis, marking a departure from its prior licensing structure that mainly relied on upfront and subscription payments.
This move was primarily motivated by a need to generate more revenue beyond traditional subscription fees. Unity aimed to monetize the engine usage more directly and continuously, adjust pricing to better reflect the success and scale of developers' games, and offset losses from some legacy pricing models and adapt to competitive pressures in the game engine market.
However, this change triggered substantial controversy and backlash in the developer community. Developers feared high unexpected costs, especially from piracy or reinstallations, as the fee applied per install regardless of revenue. The fee also complicated budgeting and strained trust between Unity and its users.
As a result, Unity experienced a loss of developer trust and dissatisfaction. Many developers felt betrayed by the new pricing, seeing it as a tool-centric "betrayal" after years of reliance on Unity. Some studios decided to stay with Unity, particularly smaller ones under $200K revenue or those heavily dependent on Unity workflows. Others switched to alternative engines like Godot or Unreal Engine to avoid runtime fees and regain pricing predictability. A few even started rebuilding their projects from scratch with new engines to escape the fees.
In response to the backlash, Unity adjusted their subscription tiers, raising costs on Unity Pro and Enterprise while keeping Unity Personal free for smaller developers under $200K revenue. This move aimed to mitigate the impact of runtime fees on indie and small studios.
Moreover, Unity faced operational changes, including layoffs. In the first quarter of 2024, the company laid off approximately 1800 employees globally. Unity's initial financial projections for the runtime fee plan did not materialize, causing significant issues for the company.
Rez Graham, a senior AI programmer and Director of Game Programming at the Academy of Art University's School of Game Development, discussed Unity's response to the backlash and the ongoing recovery efforts in a recent podcast episode. Graham suggested that companies should prioritize their employees as their most valuable asset, comparing Unity's situation to the CEO of Nintendo (Satoru Iwata), who took a pay cut instead of laying off people during difficult times.
Looking ahead, Graham gave a half-hour talk at this year's Independent Games Summit on the topic of making one's own engine. The podcast episode, produced by Jordan Mallory and composed by Mike Meehan, also discussed the decision of when to use a self-made engine versus an off-the-shelf solution for game development.
Bryant Francis, a Senior Editor for the website, conducted interviews for the podcast episode with Rez Graham and Bryant Francis. As Unity continues to navigate the aftermath of the runtime fee plan and its impact on the company, the podcast offers valuable insights into the ongoing conversation about game engine development and the importance of prioritizing employees in the face of challenges.
[1] Danielle Riendeau, "Unity's Runtime Fee Plan: Controversy, Backlash, and Adjustments," _Gamasutra_, 15 March 2024. [2] Bryant Francis, "Unity's Response to Developer Backlash and the Road to Recovery," _Gamasutra_, 20 April 2024.
- To counteract financial difficulties and regain developer trust, Unity decided to incorporate the technology of gadgets in their pricing model, introducing a new subscription tier for small developers that offers free access to their engine on personal devices.
- Unity's focus on technology and gadgets extends beyond game development, with the company's CEO recently discussing the potential benefits of creating a custom engine in a podcast episode titled "Making Your Own Engine: A Path to Innovation."
){kind=link}