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Unity3D – open letter on runtime fees
https://blog.unity.com/news/open-letter-on-runtime-fee
To our community:
I’m Marc Whitten, and I lead Unity Create which includes the Unity engine and editor teams.
I want to start with this: I am sorry.
We should have spoken with more of you and we should have incorporated more of your feedback before announcing our new Runtime Fee policy. Our goal with this policy is to ensure we can continue to support you today and tomorrow, and keep deeply investing in our game engine.
You are what makes Unity great, and we know we need to listen, and work hard to earn your trust. We have heard your concerns, and we are making changes in the policy we announced to address them.
Our Unity Personal plan will remain free and there will be no Runtime Fee for games built on Unity Personal. We will be increasing the cap from $100,000 to $200,000 and we will remove the requirement to use the Made with Unity splash screen.
No game with less than $1 million in trailing 12-month revenue will be subject to the fee.
For those creators on Unity Pro and Unity Enterprise, we are also making changes based on your feedback.
The Runtime Fee policy will only apply beginning with the next LTS version of Unity shipping in 2024 and beyond. Your games that are currently shipped and the projects you are currently working on will not be included – unless you choose to upgrade them to this new version of Unity.
We will make sure that you can stay on the terms applicable for the version of Unity editor you are using – as long as you keep using that version.
For games that are subject to the runtime fee, we are giving you a choice of either a 2.5% revenue share or the calculated amount based on the number of new people engaging with your game each month. Both of these numbers are self-reported from data you already have available. You will always be billed the lesser amount.
We want to continue to build the best engine for creators. We truly love this industry and you are the reason why.
I’d like to invite you to join me for a live fireside chat hosted by Jason Weimann today at 4:00 pm ET/1:00 pm PT, where I will do my best to answer your questions. In the meantime, here are some more details.*
Thank you for caring as deeply as you do, and thank you for giving us hard feedback.
Marc Whitten
On September 18, Unity Software held an all-hands meeting to discuss the rollout of per-install fees. The recording was reviewed by Bloomberg, which said the company is ready to backtrack on major aspects of its new pricing policy.
The changes are yet to be approved, but here are the first details:
➡ Unity plans to limit fees to 4% for games making over $1 million
➡ Instead of lifetime installs, the company intends to only count installs generated after January 1, 2024 (so the thresholds announced last week won’t be retroactive);
➡ Unity won’t reportedly track installs using its proprietary tools, instead relying on self-reported data from developers.During the meeting on Monday, Unity CEO John Riccitiello noted that the new policy is “designed to generate more revenue from the company’s biggest customers and that more than 90% of Unity users won’t be affected.” When asked by several employees how the company would regain the trust of developers, execs said they will have to “show, not tell.”
David Helgason, founder of Unity and its former CEO (he is currently on the board), also commented on the controversy around the pricing changes. In a Facebook post (spotted by GamesBeat), he said “we f*cked up on many levels,” adding that the announcement of the new business model “missed a bunch of important “corner” cases, and in central ways ended up as the opposite of what it was supposed to be. […] Now to try again, and try harder,” Helgason wrote. “I am provisionally optimistic about the progress. So sorry about this mess.”
RESPONSES
Unilaterally removing Terms Of Services and making them retroactive is a HUGE loss of trust in Unity’s executive and management team. There is no going back there, no matter if they patch this mess. Using Unity moving forward will just be a gamble.
4% doesn’t change anything. It does not fix any of the problems that have been raised, and asked repeatedly. Install bombing still not addressed. So many “corner cases” still not addressed, especially in the mobile space.
To little to late tbh it’s a systematic problem with the ceo being so out of touch that it’s going to happen again. Remember this was a man who wanted a dollar per battlefield player revive
Mega Crit said Unity’s decision was “not only harmful in a myriad of ways” but was also “a violation of trust”, and pointed to Unity’s removal of its Terms of Service from GitHub, where changes can be easily tracked.
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Simulon – a Hollywood production studio app in the hands of an independent creator with access to consumer hardware, LDRi to HDRi through ML
Divesh Naidoo: The video below was made with a live in-camera preview and auto-exposure matching, no camera solve, no HDRI capture and no manual compositing setup. Using the new Simulon phone app.
LDR to HDR through ML
https://simulon.typeform.com/betatest
Process example
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Why every game developer is mad with Unity right now, explained
https://www.gamesindustry.biz/unitys-self-combustion-engine-this-week-in-business
$1.3 billion – Unity’s lifetime accumulated deficit as of December 31, 2021. Unity has never had a profitable quarter in its history. It has posted modest operating profits in the past three quarters for the first time ever,
Unity lit money on fire for decades to buy a market advantage that overrules the basic economic incentives that supposedly ensure free markets work best for customers. It was successful in doing that because it’s very hard for a sustainable business to compete against one that is fine losing billions of dollars.
First, you make yourself essential to the market, even if it costs you billions to get there. Then once you hit a threshold – let’s say, I don’t know, 70% of the market – you lean into the enshittification process. You charge more for your services, you give your customers worse terms, you turn the heat up slowly and continuously, confident in the knowledge that people are so locked in to your business and have so few viable alternatives that they may grumble but they will ultimately put up with it.
And it’s such a common strategy in so many industries today that there’s just no sense of horror or outrage from the onlookers. Industry watchers and Serious Business People have seen this play out so many times they just acknowledge it’s happening and treat it as if it’s a perfectly cool and normal thing and not illegal predatory pricing.
I think this new Runtime Fee makes perfect sense from a mile-high point of view, if you think about Unity as a business where you just turn whichever dials and pull whatever levers will make the numbers go up the most.
The only problem is it makes no sense at all if you instead think about Unity as a game development tool that game developers should want to use.
https://www.pcgamer.com/why-every-game-developer-is-mad-right-now-explained
https://www.axios.com/2023/09/13/unity-runtime-fee-policy-marc-whitten
“The uproar is primarily driven by two factors: Unity is attaching a flat per-install fees to games that use its engine, and it’s arbitrarily scrapping existing deals and making the changes retroactive.
The policy announced yesterday will see a “Runtime Fee” charged to games that surpass certain installation and revenue thresholds. For Unity Personal, the free engine that many beginning and small indie developers use, those thresholds are $200,000 earned over the previous 12 months, and 200,000 installs; one those marks are met, developers will be charged 20 cents every time someone installs their game.
Another big issue is that Unity has made this change retroactive: It supersedes any existing agreements with Unity that developers may have made, and it applies to games that were released even before any of this happened. The revenue threshold will be based on sales after January 1, 2024, when the new pricing system takes effect, but sales that occurred before that date will count toward the install threshold.
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