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Unity Cancels Runtime Fee: What This Means for Developers

September 14, 2024

Unity has officially canceled its highly controversial Runtime Fee after significant backlash from developers. Originally, the fee was meant to charge developers based on the number of installs of their game, but after facing fierce criticism, Unity decided to reverse the decision.

The proposed model would have charged up to $0.20 per install once certain thresholds were reached — specifically, $200,000 in revenue or 200,000 installs for users of Unity Personal.

Larger studios using Unity Pro and Enterprise faced a different pricing structure. Unity originally planned to charge these subscribers between $0.125 and $0.15 per install once their game hit $1 million in annual revenue and 1 million lifetime installs.

Developers with higher install counts were eligible for discounts, which aimed to alleviate some of the financial burden​.

Why Unity Canceled Runtime Fee?

The outcry from the game development community was overwhelming, with many arguing that Unity’s decision was a betrayal of its long-held mission to democratize game development. Developers feared that the fee would unfairly penalize games that use free-to-play models, which often see multiple installations as users re-download the game across various devices or platforms​.

Unity’s announcement of the Runtime Fee was seen by many as a financial barrier, particularly for indie developers. This group, which has traditionally relied on Unity for its affordability, felt especially targeted. Concerns also arose about the retroactive nature of the fees, which would have affected games already released. The backlash was swift, with many developers even threatening to migrate to other game engines, such as Unreal or Godot, if the fees remained​.

In response to the growing criticism, Unity backtracked. Marc Whitten, Unity’s president of Create Solutions, addressed the change directly, stating that Unity “cannot pursue this mission in conflict with our community.” The company recognized that the Runtime Fee had created a rift between Unity and its user base and committed to rebuilding that relationship​.

For a more detailed explanation of how the Runtime Fee could have impacted developers, check out our previous coverage on the topic here.

What is Unity’s New Pricing Structure?

With the cancellation of the Runtime Fee, Unity has unveiled a new pricing model designed to balance the company’s financial goals with the needs of its developers. The first significant change is that Unity Personal, the free tier that many indie developers rely on, will remain free.

Furthermore, Unity has raised the revenue cap for Unity Personal users from $100,000 to $200,000, doubling the threshold under which users can develop games without paying a fee​.

One of the most exciting changes for smaller developers is the removal of the mandatory Unity splash screen, starting with Unity 6. This has been a long-standing complaint from users of Unity Personal, as it restricted branding options for their games. Now, creators can remove the Unity splash screen entirely, giving them more control over how their games are presented​.

For larger studios using Unity Pro or Enterprise, there are new pricing updates to contend with. Unity Pro, which previously cost $2,040 per seat annually, has been increased to $2,200 per seat. Meanwhile, Unity Enterprise plans will see a 25% increase. Unity explains that these changes are necessary to allow continued investment in their platform, ensuring they can deliver the tools and support developers need​.

How Do Developers React?

The response to the cancellation of the Runtime Fee has been largely positive, with many developers relieved that Unity listened to their concerns. Small and indie developers, in particular, feel vindicated by the company’s decision to cancel the fee, which they argued would have disproportionately affected them.

However, while most are happy to see the Runtime Fee scrapped, some developers remain cautious. The swift introduction and equally quick removal of the fee have raised questions about Unity’s future decision-making. There are concerns about whether this pricing reversal is a one-off or whether Unity might introduce other controversial changes down the line. For many developers, the cancellation represents a step in the right direction, but trust in the platform has been shaken​.

What’s Next for Unity?

With the cancellation of the Runtime Fee and the introduction of new pricing tiers, Unity is attempting to rebuild trust with its developer community. Unity’s leadership has stressed that the company is committed to being a better partner and has acknowledged the need for clearer communication going forward. Unity President Marc Whitten emphasized that Unity's primary goal is to help developers succeed and that the company will remain focused on providing tools that are accessible to developers of all sizes​.

In the coming months, Unity will release Unity 6, which promises improved performance, better mobile optimization, and enhanced multiplayer development features. Unity also plans to introduce further updates to ensure that the platform stays competitive with other game engines. Whether Unity can regain the trust of its developers remains to be seen, but for now, the cancellation of the Runtime Fee is a significant step in the right direction.

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