The Unity Engine has indeed become a cornerstone in the world of video game development, powering many beloved games and serving as the engine of choice for indie developers and students looking to learn game development. In recent times, even AAA studios have chosen Unity for their projects. However, the game development community was surprised when Unity unveiled its new pricing policy, which appears to be geared towards increasing revenue but has raised concerns about its impact on developers, as it may not be as supportive as they would hope.
New Unity Engine Pricing Structure
Unity’s new engine policy, as outlined in an official blog post, introduces changes to pricing and licensing for developers. Beginning on January 1, 2024, developers will be required to pay a monthly runtime fee for new game installations. This fee structure will apply to developers who have earned more than $200,000 in the last 12 months and have a lifetime total of 200,000 game installations. Unity Pro and Unity Enterprise subscribers will be subject to this fee once they surpass the $1 million revenue mark and reach 1 million lifetime installations.
To put it simply (Rami Ismail, a developer, explained this effectively), Unity Personal users will need to pay approximately $0.20 per install once they surpass 200,000 downloads in a year. This means that smaller developers will be burdened with annual fees of around $40,000 once they reach this threshold, which many find unrealistic and detrimental to smaller development teams.
This highlights the impact on the broader user base of the engine, particularly smaller developers. In contrast, competing engines like Godot, GameMaker, and RPG Maker offer their game engines for free. Even Epic Games charges only a 5% royalty fee on revenue once developers reach a lifetime of $1 million in sales.
The situation becomes even more concerning when considering additional details about how this system works. Firstly, Unity intends to apply these charges retroactively to every Unity game currently on the market. Secondly, every game installation will be subject to the $0.020 charge, including pirated copies. This raises serious concerns about the potential misuse of the system to financially harm developers.
Unity Addresses Concerns from Game Developers
Unity addressed this issue on their official X (formerly Twitter) account, stating that the new fee structure would primarily affect developers who are earning revenue. They emphasized that most developers using their engine can continue to use it without being affected by the new fee. Additionally, Unity clarified that the runtime fee is not retroactive or perpetual, meaning it applies only to new game installs and not to existing games.
On their official X (formerly Twitter) account, Unity has responded to this matter by explaining that the revised fee structure primarily impacts developers who generate revenue. They have underscored that the majority of developers utilizing their engine can continue to do so without being impacted by the updated fee. Furthermore, Unity has made it clear that the runtime fee is neither retroactive nor perpetual, signifying that it is applicable solely to new game installations and does not affect existing games.
They will levy a one-time fee for each new installation, which differs from a perpetual license royalty model, such as revenue sharing. Additionally, Unity asserts that they provide options to potentially reduce or even eliminate this runtime fee. Users are encouraged to reach out to Unity to explore potential pricing discounts. Unity has also introduced an FAQ section that addresses various concerns raised by developers. However, there is still a lack of clarity regarding how Unity plans to track game installations running on its engine.
Let’s not mince words here; Unity has faced substantial criticism for its actions in recent years. The announcement of its merger with ironSource drew strong disapproval from the public, with many expressing concerns about the early implementation of monetization in game development. Unity’s CEO, John Riccitiello, responded to these concerns in a manner that some found highly inappropriate, using derogatory language to refer to its users its users “fu*king idiots.”. Although he did issue an apology afterward, it did little to assuage the resulting discontent. The introduction of the new runtime fees has exacerbated the rift between Unity and developers, leading many to seriously contemplate shifting their games to alternative engines, leaving Unity behind in the process.
And why shouldn’t they be concerned? Unity’s new fee structure has wide-reaching implications. Notable titles developed using the Unity Engine, including HoYoverse’s Genshin Impact, Honkai: Star Rail, and beloved indie games like the System Shock Remake, Cuphead, Rust, Hollow Knight, Ori, among others, have amassed a substantial user base. Considering this extensive install base, these game developers will incur significant costs per installation in addition to the royalties they are already obligated to pay, assuming they are using Unity’s professional plans. If larger games of this stature are grappling with these financial challenges, one can only imagine the potential difficulties faced by smaller indie titles that gain popularity and witness thousands of downloads.
Hopefully, we’ll witness a resolution from Unity in the upcoming weeks. Developers are expressing their legitimate concerns, and their voices carry weight. Voicing concerns can indeed be a powerful catalyst for positive change, at times.
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