Report: Unity considering revenue-based fee caps, self-reported install numbers

As a player, why do you care?

This bullshit heavily affects game devs (on the financial modeling end). It doesn’t really do anything to the players.

Why would a gamer care?

Goodbye updates to indie games.

There are quite a few Devs who have said they will remove their game from sale. There are many more who will stop developing in the Unity Engine.

Some may have the time and funds to port their games. Many will not be able to or willing though.


This is extremely bad for everyone.
 
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31 (31 / 0)

sarusa

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Now that they've floated this once it WILL happen some time in the future. You can't trust this sleazy a-hole, his Hannibal Lecter eyes, his even sleazier president and board members, or the two giant vampire squids on the face of Unity (the private equity).

If you stick with Unity, at some point they will f@#$ you even harder than this. Self-reported install numbers can't possibly last, because they obviously plan on even more Comcast like per-install fees.

1695087828338.png


https://www.penny-arcade.com/comic/2023/09/18/undercraw
 
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35 (35 / 0)
So - It couldn't have been done differently, but at the same time, "we could have done things a lot better"!? Well, which is it? Anyone with half a brain could have told them that their initial approach and announcements were overly aggressive and completely tone-deaf.

from:
https://www1.salary.com/John-Riccitiello-Salary-Bonus-Stock-Options-for-Unity-Software-Inc.htmlexcerpt formatted for clarity:


Why are they paying this idiot almost $12M a year if he can't even generate a single coherent message, much less pivot to a different payment model without alienating their entire install base against them?
His golden parachute is going to be so behind ridiculous.

We need to stop allowing these people to have money and power.
 
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7 (8 / -1)
What I don't understand is what is going through the heads of the people making decisions like this. It seems like it should be obvious to anyone with a brain what the precise reason would be, and the effect on the business and its value. It's bizarre.

Yet more evidence that CEO is actually not a really a job that needs any skill or ability.
 
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The only way this works is if they leave their hands off games that were licensed under the prior terms entirely.

"Royalty free means royalty free." means you can't go backwards and charge royalties to people who entered into an agreement under those terms.
Agreed. Whether it's legal or not, I don't know. But it was definitely stated in the past. And you can't make that kind of change without infuriating your devs. It was a terrible play.
 
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xoe

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"Doubling down" would be if he said they're still going with Plan A, and to hell with what everybody else says. They're going with Plan B, which is definitely less aggressive. I'm not a game developer and I'm not saying people have to like Plan B or necessarily forget that Plan A was proposed. I'm also not saying he struck the proper tone in backing down from Plan A. But back down, he definitely did, to some extent. And you're definitely mischaracterizing his response.
I'd say that the only reason he isn't doubling down was that Plan B was the plan all along, but I'm not convinced he's smart enough to come up with such a dumb idea.
 
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Uncivil Servant

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Do all these CEOs forget that Jobs ended his life relatively young, with most of his life spent running companies instead of enjoying himself, with his marriage failed and essentially no real friends?

Sure, he's got Apple as a legacy. But so does Woz, and he's still alive, having fun and making a difference in this world.

Steve Jobs died from cancer, and while he did pursue some quack cures, by then it was too late anyways.

His death is no more a morality tale than if I died of status ep tomorrow or you got hit by a bus.

Sorry, but I have zero tolerance for medical moralists. Been there, got the scars.
 
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-15 (11 / -26)
They really need to fire John Riccitiello. Between the dumping stock before the announcement, the announcement itself, and not taking into account for a moment the long term damage this would do to their brand in the development community as a whole, he needs to be one of the first decisions pivoting away from this decision.
The man, without fostering an entire culture of sexual harassment and misogyny, still managed to make EA the most hated and disliked company in the world, based on his personal comments and business decisions alone, which you could argue is even more impressive than Activision-Blizzard (Recall A-B scandal is caused by the actions of many, many people).

That THIS "MAN" (I can't bring myself to type out his name, and I use the term man to be polite) single handedly managed to make Unity the most hated company in the business with just ONE ANNOUNCEMENT is pretty much characteristic for him.
 
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23 (24 / -1)

TimeWinder

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I'm happy enough with "doubling down." This is basically just "what we said before, but with some minor modifications to make it sound less bad, and DEFINITELY nothing like a promise that we won't change the terms again or any actual reversion to what we promised last time." With excuses, fingerpointing, and "gosh, NOBODY could have foreseen this" crap.

In particular, the fact that they're STILL talking about per download/install fees (something basically nobody else does) is weird -- it's such a bizarre hill to die on: trying to put a toll on something unrelated to revenue generation. The reason they can't find the right band-aid is because it's such a gaping wound.

And die on it, they will, I think. This has been a week now, and Unity obviously isn't even considering that maybe the fundamental idea needs to be redrawn and reconsidered. They're just brainstorming "ways we can make people less mad about it, but without changing anything." Even WotC had figured out by this point that they had a losing hand.
 
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Uncivil Servant

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When an artist is willing to spend what looks like hours making your face look as suitable as possible for punching, you've probably fucked up. There are exceptions, sometimes you're just black and trying to make things better for you and yours, sometimes your just a notable jew. But generally, it's a sign you've fucked up.

I get what you're probably trying to say, so I'm just gonna politely point out that you're pulling a Riccitiello yourself here, in that there is really no way that this post is going to come across well.
 
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25 (26 / -1)

bearcatman

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Any competent crisis PR professional would tell them that the only right thing to say now would be "we hear you, and we've put our plans on pause to give us time to discuss the way forward with our community." Just drop the whole subject for now. Even if you still think the plan is sound, it's been poisoned. Poking at it more will just spread the poison further. Put it aside, spend some time figuring out a way to address your concerns that won't step on the live wires this one did, then bring it back if/when you can come up with that.

I don't know if they've hired a crisis PR professional, but if they have, that person is not very good at it.
Doesn’t matter how good the advice is if you don’t take it. I’m sure they’ve been told by many people internally that this would go to shit, but this type of executive is incapable of hearing it.
 
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Uncivil Servant

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Doesn’t matter how good the advice is if you don’t take it. I’m sure they’ve been told by many people internally that this would go to shit, but this type of executive is incapable of hearing it.

And the people who are good at giving that advice, people with words like "analyst" in their job description, often just laugh and refuse to work for those types of executives.
 
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jtwrenn

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Any competent crisis PR professional would tell them that the only right thing to say now would be "we hear you, and we've put our plans on pause to give us time to discuss the way forward with our community." Just drop the whole subject for now. Even if you still think the plan is sound, it's been poisoned. Poking at it more will just spread the poison further. Put it aside, spend some time figuring out a way to address your concerns that won't step on the live wires this one did, then bring it back if/when you can come up with that.

I don't know if they've hired a crisis PR professional, but if they have, that person is not very good at it.
Agreed. Any increase right now is ridiculous. Hold a year, rejigger, simplify and prostrate yourself at the feet of your community.

.....I still don't see any reason to do business with them at this point unless you are locked in or half way through making a game. Oust the CEO make major changes, and clean up your damn TOS.
 
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jtwrenn

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As a player, why do you care?

This bullshit heavily affects game devs (on the financial modeling end). It doesn’t really do anything to the players.
This could very well change a ton of things for end users. Delays and price increases are definitely part of it. That being said I think the damage to the indie community will be the biggest thing. A whole community that existed in the Unity world is going to be shattered and reformed by this, and who knows where they will land. A crap ton of man hours learning this utility will be at least partially gone and learning new systems will come into play. Quality will likely take a hit while designers and coders with years of Unity experience will partially have to start over relearning new tools. It's not just the devs, it's all the devs customers who will feel this, just in different ways.
 
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18 (18 / 0)
Why would a gamer care?

Goodbye updates to indie games.

There are quite a few Devs who have said they will remove their game from sale. There are many more who will stop developing in the Unity Engine.

Some may have the time and funds to port their games. Many will not be able to or willing though.


This is extremely bad for everyone.

And we should as gamers care because what hits developers financially will hit the paying consumer as well. What we don't want to happen is this per-install based royalty approach to become a ubiquitous model adopted across the industry. Costs and risks are eventually passed down to us after all.

Unity install base and influence, especially on mobile, is big enough to be a concern. Normalizing this royalty model (and perhaps extending it to other software and middleware) disincentives developers from the 'pay once and get the entire game experience' and encourages further entrenchment of recurring revenue models like live service games, micro-transactions and ads.

So as a dev and a gamer - I want this per install based royalty model dead and buried deep in the Graveyard of Bad Ideas and never dug up again.
 
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21 (21 / 0)
The community has invested so much in this tool, that finding documentation and doing something on Unity is considerably easier than any competing product, just for that, I hope Unity comes up with something to partially salvage the situation. The revenue based cap is a no brainer, it simply doesn't make sense without it and probably wouldn't have changed Unity's cut anyways. Their entire approach was so shrewd and inconsiderate though.
 
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hillspuck

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Any competent crisis PR professional would tell them that the only right thing to say now would be "we hear you, and we've put our plans on pause to give us time to discuss the way forward with our community." Just drop the whole subject for now. Even if you still think the plan is sound, it's been poisoned. Poking at it more will just spread the poison further. Put it aside, spend some time figuring out a way to address your concerns that won't step on the live wires this one did, then bring it back if/when you can come up with that.
Nah, wouldn't work. It'd still be a Sword of Damocles just waiting to fall on anyone starting a project in Unity. Or anyone who has any possibility of moving away from Unity before releasing their game. Dropping the subject would actually make the whole thing much worse, because they've already raised the specter of retroactivity in counting installs.
 
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Auie

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Riccitello used to be head of EA, during it's monetizing-shitfest heyday, and once called game developers "f*cking idiots," for not focusing on monetizing their games.

Go figure that a greedy, short-sighted PoS like that would land their company in the middle of shit-creek, without a paddle.

If only his kind of moronic, parasitic behavior wasn't actively rewarded by the fetid swamp that Americans call their economy.
 
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19 (20 / -1)

Thad Boyd

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They really need to fire John Riccitiello. Between the dumping stock before the announcement
Agreed that he should be fired, but this line about how he "dumped stock before the announcement" really needs to be dumped itself.

2000 shares may sound like a lot, but it's a fraction of a percent of his total holdings. I've seen no credible basis to the allegations of illegal insider trading (nor any explanation for why, if the executives were so sure this was going to tank their company's value, they...went ahead and did it anyway).

There are plenty of things to criticize Riccitiello and the rest of Unity's management for without resorting to conspiracy theories.
 
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Thad Boyd

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The man, without fostering an entire culture of sexual harassment and misogyny, still managed to make EA the most hated and disliked company in the world
I mean, I'm pretty sure there are companies that are more disliked than EA. Purdue Pharma, Halliburton, Koch Industries, Theranos, whatever Blackwater and Philip-Morris are calling themselves these days...EA sucks, but let's keep things in perspective; they're not a patch on those guys.
 
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7 (9 / -2)
Whoever has a stake in this, I hope they don't back down, he's trying the oldest trick in the book. Put out a massively bad change, walk it back, and then put out a less bad change later to try and make people think they won by stopping the worse change.
They haven't walked it back yet. Note that the cap of 4% of the revenue only applies to customers that make over $1million. Note they said customer, not game.

No mention of a cap for devs making less than that. The ones most at risk of install fees exceeding revenue, especially if they make someone angry and get targeted for install spam.

Nothing to ease the fear of what retroactive changes they will make next time.

They haven't even done anything that would dodge any lawsuits.
 
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19 (19 / 0)
Hell, how is a dev supposed to know what the number of installs are?

Like, from the beginning, a major complaint has been nobody can realistically know how many times a game has been installed. A dev may know how many times a game has legitimately been purchased, but getting install numbers without likely GDPR-violating tracking seems impossible.

This is just passing the buck on the fact that the concept of tracking installs itself is just a nonsense way of deriving a fee.
You can track installs easily without breaking GDPR. For starters, AppStore & PlayStore tell you the numbers and you can include your own analytics with the game. As long there's no personally identifiable information they can do that
 
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-9 (3 / -12)

theSeb

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Agreed that he should be fired, but this line about how he "dumped stock before the announcement" really needs to be dumped itself.

2000 shares may sound like a lot, but it's a fraction of a percent of his total holdings. I've seen no credible basis to the allegations of illegal insider trading (nor any explanation for why, if the executives were so sure this was going to tank their company's value, they...went ahead and did it anyway).

There are plenty of things to criticize Riccitiello and the rest of Unity's management for without resorting to conspiracy theories.
Also, didn’t the stock initially go up in value on the day of the announcement. So yeah, please stop this insider trading crap. I see some gaming ‘news’ channels have latched onto it as well.
 
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10 (10 / 0)
You can track installs easily without breaking GDPR. For starters, AppStore & PlayStore tell you the numbers and you can include your own analytics with the game. As long there's no personally identifiable information they can do that

The problem isn't just tracking the # of installs, but differentiating an install vs. reinstall on the same device vs. an install on another device vs. pirated installs vs. installs on VMs/emulators/simulators etc. without relying on a hardware or OS level identifiers.

There's a reason Android and iOS sealed off access to those IDs years ago, because of privacy issues.
 
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eldakka

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To be fair, this wasn't an official statement from Unity, but leaked info from a town hall Unity had with its staff, apparently to brain-storm solutions.
Did anyone suggest out loud what I'm sure many were thinking in this 'brain-storm' session?

step 1: Resignation of CEO.
step 2: Resignation of board.
step 3: Resignation of any other CxO's involved in proposing or supporting the initial scheme.
 
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Carewolf

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I'm happy enough with "doubling down." This is basically just "what we said before, but with some minor modifications to make it sound less bad, and DEFINITELY nothing like a promise that we won't change the terms again or any actual reversion to what we promised last time." With excuses, fingerpointing, and "gosh, NOBODY could have foreseen this" crap.

In particular, the fact that they're STILL talking about per download/install fees (something basically nobody else does) is weird -- it's such a bizarre hill to die on: trying to put a toll on something unrelated to revenue generation. The reason they can't find the right band-aid is because it's such a gaping wound.

And die on it, they will, I think. This has been a week now, and Unity obviously isn't even considering that maybe the fundamental idea needs to be redrawn and reconsidered. They're just brainstorming "ways we can make people less mad about it, but without changing anything." Even WotC had figured out by this point that they had a losing hand.
I suspect they might have a contract with Apple, promising not to charge traditional royalties, in exchange for the AR deal. So they feel forced to do something stupid instead.
 
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