After weeks amidst controversy over its new billing policies, considered abusive against editors and developers, Unity announced the departure of John Riccitiello, who will step down from all positions in the company, including leaving his role as a member of the Board of Directors.
John Riccitiello Steps Down from Unity - Who Will Take His Place?
A short while ago, Unity shared a press release announcing that John Riccitiello is stepping down from the company as CEO, executive chairman, and a member of the Board of Directors, all with immediate effect. In his place, it was decided that James M. Whitehurst would fulfill John Riccitiello's roles as interim CEO, president, and a member of the Board of Directors while the company finds a new CEO. In that regard, the company has initiated a CEO search process with a specialized firm to secure official leadership as soon as possible. Likewise, it is noted that John Riccitiello will assist as an advisor during the transition period. Additionally, Unity appointed Roelof Botha, who served until today as an independent director of the Board of Directors, as the company's president.
John Riccitiello Bids Farewell to Unity
Regarding this, John Riccitiello stated: "It has been a privilege to lead Unity for nearly a decade and to serve our employees, customers, developers, and partners, all of whom have been instrumental in the company's growth. I look forward to supporting Unity through this transition and the future success of the company."
John Riccitiello's departure from Unity comes after the company ignited the ire of developers by announcing a controversial billing system that threatened their earnings by proposing a fee per installation, targeting services like Xbox Game Pass and PlayStation Plus. After the wave of criticism and attacks against Unity and its director, they changed the billing model, something announced after a public apology, but it seems the damage was already done. Here's what happened:
Why Did Unity Anger the Video Game Industry?
Unity announced a new policy that would come into effect on January 1, 2024, directly targeting subscription models like PlayStation Plus and Xbox Game Pass. Specifically, the company intended to charge a fee ranging from $0.01 USD to $0.20 USD for each installation of a game created with its engine.
After the initial criticism and the start of the scandal, Unity responded, stating that the fee would only be charged for the first installation of a game. This was a response to concerns that it could be misused, thinking about potential download bombardment by player groups knowing that it would affect the finances of studios and publishers. However, the change was not enough, as editors and developers pointed out that a fee per download, even initially and only once, would be a severe blow to their finances.
Subsequently, some studios, like the creators of the indie hit Cult of the Lamb, threatened to stop selling their games, stating that they wouldn't give a single extra cent to Unity beyond what was agreed upon previously. On the other hand, the situation escalated to the point where a "credible" report of death threats led to the evacuation of the company's building.
What Does Unity's New Billing Policy Say?
Firstly, the controversial Runtime Fee that sparked the controversy did not completely die, but it will be considered at other user levels as an option. Let's start with the initial changes:
Firstly, the Unity Personal plan will not only remain free, but it will see an increase in the reported revenue limit for those who want to use it, from $100,000 USD to $200,000 USD. Additionally, the use of the "Made with Unity" screen at the beginning of the game will no longer be mandatory. Also, the company announced that "no game with less than $1 million USD in final revenues over 12 months will be subject to any fee."
Next, Unity Pro and Unity Enterprise users, as well as games generating more than $1 million USD, will be considered according to the terms and conditions of the engine version they used to create their game. Initially, retroactivity is eliminated, so no game made before January 1, 2024, will be subject to the new fee billing policies. However, in the case of a game in these conditions being updated to a version of Unity equal to or later than the mentioned date, the new terms and conditions will apply. The same situation applies to all games made in Unity from the next year onward.
Now, the controversial Runtime Fee, charging between $0.01 USD and $0.20 USD per unique installation, will be converted into one of two options. In this case, Unity proposes that the developer, based on their installation or revenue reports, pays the total fee generated month by month or offers a 2.5% share of the total revenues to the company that owns the graphics engine. Unity indicates that the amount to be paid will be the lesser of the two options, trying to favor developers.
"It has been a privilege to lead Unity for nearly a decade and to serve our employees, customers, developers, and partners, all of whom have been instrumental in the company's growth. I look forward to supporting Unity through this transition and the future success of the company." ― John Riccitiello bids farewell to Unity, October 9, 2023
Thus, Unity has made the expected move by removing John Riccitiello from the game, but now it will have to convince editors and developers whose trust it lost in recent weeks.
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