Unity cancels controversial runtime fee, announces new pricing model

2x your creative output with half the effort, reactivate iOS UA with better ROI than Android, and climb the charts without breaking the bank! Join our FREE lean growth webinar and learn to build a killer growth org on any budget – with experts from Random Logic Games, Candywriter, and Upptic! REGISTER NOW!

In a significant move, Unity has officially canceled its controversial runtime fee, a year after its initial announcement. This decision, revealed by Unity’s new CEO Matt Bromberg, has been met with relief from developers and the market, driving a surge in Unity’s stock price.

Developer backlash over Unity runtime fee

The controversial fee, which proposed charging developers each time their games built on the Unity engine were installed, faced immense backlash, particularly from developers in emerging markets and those with low-monetization games. The policy was seen as disproportionately harmful to small studios and games with less aggressive monetization strategies, leading to widespread criticism within the gaming community.

Leadership and workforce changes at Unity

Despite the positive market response, Unity’s journey has come with significant challenges. Former CEO John Riccitiello stepped down in October, likely in response to the mounting controversy, and in January, Unity laid off 25% of its staff as part of a restructuring, including key members from IronSource, a company Unity had acquired in 2022.

New pricing structure introduced

While the runtime fee has been scrapped, Unity has introduced a revised pricing structure. Its Pro package, tailored to small and medium-sized developers, will see an 8% price increase, while its Enterprise package, aimed at companies earning more than $25 million annually, will jump by 25%. On a brighter note for smaller developers, Unity has raised the revenue threshold for free-tier usage from $100K to $200K.

Unity’s path to profitability and future outlook

Unity remains unprofitable and is seeking sustainable growth. Last month, the company brought in industry veteran Jim Payne as Chief Product Officer to guide its growth strategy. Whether these changes will steer Unity toward profitability while regaining trust from the developer community remains to be seen, but for now, the company is charting a new course to stabilize its business and rebuild its standing in the industry.