Unity unites the indie game industry against its new pricing model

Unity is undergoing yet another layoff, and this time it’s going to affect about 25 percent of its entire workforce, or around 1,800 employees. In a filing with the Securities and Exchange Commission, the company, which makes the popular game engine Unity, said it’s making the cuts “as it restructures and refocuses on its core business, and to position itself for long-term and profitable growth.”

Unity has been through several rounds of layoffs within the past year, with the most recent one affecting 265 workers last November. However, it’s still not clear whether Unity is cutting 1,800 additional workers on top of the layoffs it announced last year. We’ve reached out to Unity for clarification.

In its Q3 earnings report published Thursday, game development software company Unity announced that it will “likely” be implementing layoffs as part of broader cost saving measures.

In the report, the company says it is assessing its product portfolio “to focus on those products that are most valuable to our customers” and is “evaluating the right cost structure that aligns with the more focused portfolio.” It plans to make changes during the fourth quarter, and they will “likely include discontinuing certain product offerings, reducing our workforce, and reducing our office footprint.” The company expects to complete its changes before the end of Q1 2024.

Unity’s CEO is out, but that may not matter for game developers frustrated with the company.

John Riccitiello has announced he is retiring from his role as the CEO of beleaguered game engine software company Unity. Riccitiello, who previously held the top job at Electronic Arts when it was voted the worst company in America and had some controversial ideas about game monetization, will retire as CEO effective immediately but remain as a Unity employee until April 2024.

Unity, the company behind the game development engine of the same name, has just announced that its president, CEO, and chairman John Riccitiello “will retire” effective immediately.

“The Board will initiate a comprehensive search process, with the assistance of a leading executive search firm, to identify a permanent CEO,” reads the press release, adding that James Whitehurst will step in as interim CEO, president, and board member. “Mr. Riccitiello will continue to advise Unity to ensure a smooth transition.”

A little more than a week after announcing a disastrous new pricing model that infuriated developers, Unity has introduced its revamped version.

The new plan is a drastic departure from what was initially announced. Now, users on the Unity Personal subscription plan will not be charged the new fee, and Unity will increase the revenue cap on games made with that plan to $200,000.

Unity plans to change its forthcoming pay-per-install program following widespread criticism from game developers.

“We apologize for the confusion and angst the runtime fee policy we announced on Tuesday caused,” Unity posted on X (formerly Twitter). “We are listening, talking to our team members, community, customers, and partners, and will be making changes to the policy. We will share an update in a couple of days.”

The game developers affected by Unity’s new pricing model are striking back. A collective of developers across 19 companies, mostly based in Europe and mostly developing mobile games, has put out an open letter urging Unity to reverse course on its recently announced pricing model changes. The letter contains some of the same sentiments expressed by other developers this week but with one big twist.

“As a course of immediate action, our collective of game development companies is forced to turn off all IronSource and Unity Ads monetization across our projects until these changes are reconsidered,” the letter read.

Earlier this week, Unity, the company that makes the Unity video game engine popular with indie developers, announced that it was changing its pricing model. The changes included a pricing scheme that sought to charge developers on a per-install basis for games that met specific download and revenue thresholds.

Unity wanted to charge developers for game installs without seemingly taking into account the many reasons a game might be installed without being purchased. Unity’s new model could theoretically result in situations where developers would be on the hook for hundreds of thousands of dollars in fees without the revenue to pay for it.

The Unity pricing debacle has taken an unfortunate, dangerous turn. In a new report from Bloomberg, the company has reportedly canceled a town hall meeting due to what the publication called credible death threats. According to Bloomberg, Unity CEO John Riccitiello was set to address employees Thursday morning, but the companywide meeting was canceled and two of Unity’s offices were closed because of the alleged threats.

Earlier this week, Unity, makers of a video game engine popular among indie developers, announced that it was making changes to its pricing model. In addition to charging yearly subscription fees, Unity is planning to implement a pay-per-install pricing scheme, charging developers each time a game is installed on a device once that game has met specific download and revenue thresholds.