Unity Technologies: Difference between revisions

Revision as of 17:44, 2 March 2024

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In a cash and shares deal Unity acquired [[Weta Digital]] for $1.63 billion in November 2021. Unity added the "Wellington-based company's 275 engineers to its workforce". The latter's visual special effects and animation teams "will continue to exist as a standalone entity", becoming Unity's "largest customer in the media and entertainment space". WetaFX remains majority owned by [[Peter Jackson]].<ref>{{cite web |last1=Sweney |first1=Mark |title=Peter Jackson sells special effects studio Weta Digital for $1.63bn |url=https://www.theguardian.com/film/2021/nov/10/peter-jackson-sells-special-effects-studio-weta-digital-for-almost-2bn |website=The Guardian |access-date=9 November 2021}}</ref>

In January 2022, Unity announced the acquisition of Ziva Dynamics, a Vancouver-based [[Visual effects|VFX]] company.<ref>{{cite web|title=Unity acquires Ziva Dynamics|url=https://www.gamesindustry.biz/articles/2022-01-24-unity-acquires-ziva-dynamics|website=GamesIndustry.biz|first=Jeffery|last=Rousseau|date=24 January 2022}}</ref><ref>{{Cite news |last=O'Connor |first=Alice |date=2022-01-24 |title=Unity buying skin sim tech company for fancy faces and flappy flesh |language=en |work=Rock, Paper, Shotgun |url=https://www.rockpapershotgun.com/unity-buying-skin-sim-tech-company-for-fancy-faces-and-flappy-flesh |access-date=2022-12-15}}</ref> In March 2022, they announced a partnership with [[Insomniac (promoter)|Insomniac]] to create interactive online concerts and events.<ref>{{Cite web |last=Shutler |first=Ali |date=2022-03-11 |title=3D tech platform Unity announces partnership with rave events company Insomniac |url=https://www.nme.com/news/gaming-news/3d-tech-platform-unity-announces-partnership-with-rave-events-company-insomniac-3180646 |access-date=2022-12-15 |website=NME |language=en-GB}}</ref> In June 2022, Unity laid off 4% of its workforce, estimated to be over 200 workers.<ref>{{Cite web |date=2022-06-29 |title=Sources: Unity Laying Off Hundreds Of Staffers [Update] |url=https://kotaku.com/sources-unity-laying-off-hundreds-of-staffers-1849125482 |access-date=2024-03-02 |website=Kotaku |language=en}}</ref><ref>{{Cite news |date=2022-06-30 |title=Unity lays off four percent of workforce to "realign resources" |url=https://www.eurogamer.net/unity-lays-off-four-percent-of-workforce-to-realign-resources |access-date=2024-03-02 |work=Eurogamer.net |language=en}}</ref> In July 2022, Unity agreed to buy [[ironSource]] in an all-stock deal worth US$4.4 billion.<ref>{{cite news |url=https://www.wsj.com/articles/unity-agrees-to-buy-ironsource-in-4-4-billion-videogame-deal-11657732385 |title=Unity Agrees to Buy ironSource in $4.4 Billion Videogame Deal |date=13 July 2022 |work=[[The Wall Street Journal]] |last=Needleman |first=Sarah |url-access=limited |archive-url= https://archive.today/20220713210926/https://www.wsj.com/amp/articles/unity-agrees-to-buy-ironsource-in-4-4-billion-videogame-deal-11657732385 |archive-date=13 July 2022}}</ref> On completion of the deal, Unity shareholders will own about 73.5% of the combined company and current ironSource shareholders will keep about 26.5%.<ref>{{cite news |url=https://www.cnbc.com/2022/07/13/unity-stock-down-on-lowered-2022-guidance-merger-with-ironsource.html |title=Unity shares down 13% on lowered 2022 guidance, merger agreement with IronSource |date=13 July 2022 |work=[[CNBC]] |last=Yang |first=Lily}}</ref> Unity will also receive a $1 billion investment from [[Sequoia Capital]] and [[Silver Lake (investment firm)|Silver Lake]] once the deal is closed.<ref>{{cite web|url=https://www.bizjournals.com/sanjose/news/2022/07/13/unity-software-plans-44b-acquisition.html|title=Unity Software plans $4.4B acquisition, with Sequoia, Silver Lake pledging to invest $1B|website=Silicon Valley Business Journal|date=July 13, 2022|author=Cromwell Schubarth |access-date=July 14, 2022}}</ref>

In March 2022, they announced a partnership with [[Insomniac (promoter)|Insomniac]] to create interactive online concerts and events.<ref>{{Cite web |last=Shutler |first=Ali |date=2022-03-11 |title=3D tech platform Unity announces partnership with rave events company Insomniac |url=https://www.nme.com/news/gaming-news/3d-tech-platform-unity-announces-partnership-with-rave-events-company-insomniac-3180646 |access-date=2022-12-15 |website=NME |language=en-GB}}</ref>

In July 2022, Unity agreed to buy [[ironSource]] in an all-stock deal worth US$4.4 billion.<ref>{{cite news |url=https://www.wsj.com/articles/unity-agrees-to-buy-ironsource-in-4-4-billion-videogame-deal-11657732385 |title=Unity Agrees to Buy ironSource in $4.4 Billion Videogame Deal |date=13 July 2022 |work=[[The Wall Street Journal]] |last=Needleman |first=Sarah |url-access=limited |archive-url= https://archive.today/20220713210926/https://www.wsj.com/amp/articles/unity-agrees-to-buy-ironsource-in-4-4-billion-videogame-deal-11657732385 |archive-date=13 July 2022}}</ref> On completion of the deal, Unity shareholders will own about 73.5% of the combined company and current ironSource shareholders will keep about 26.5%.<ref>{{cite news |url=https://www.cnbc.com/2022/07/13/unity-stock-down-on-lowered-2022-guidance-merger-with-ironsource.html |title=Unity shares down 13% on lowered 2022 guidance, merger agreement with IronSource |date=13 July 2022 |work=[[CNBC]] |last=Yang |first=Lily}}</ref> Unity will also receive a $1 billion investment from [[Sequoia Capital]] and [[Silver Lake (investment firm)|Silver Lake]] once the deal is closed.<ref>{{cite web|url=https://www.bizjournals.com/sanjose/news/2022/07/13/unity-software-plans-44b-acquisition.html|title=Unity Software plans $4.4B acquisition, with Sequoia, Silver Lake pledging to invest $1B|website=Silicon Valley Business Journal|date=July 13, 2022|author=Cromwell Schubarth |access-date=July 14, 2022}}</ref>

In August 2022, [[AppLovin]] made an unsolicited offer to buy Unity in exchange for $17.54 billion in an all-stock deal. The proposed merger would result in the former Unity CEO John Riccitiello becoming the CEO of the combined entity.<ref>{{cite web|url=https://www.wsj.com/articles/applovin-proposes-combination-with-unity-software-11660052115|title=AppLovin Proposes $17.5 Billion Deal to Buy Unity Software|website=[[The Wall Street Journal]] |date=August 9, 2022 |first=Connor |last=Hart |url-access=limited}}</ref> AppLovin's bid excludes ironSource, that Unity agreed to buy in July.<ref>{{cite web |url=https://www.axios.com/2022/08/09/applovin-unity-video-game-consolidation |title=AppLovin bids $17.5 billion to acquire game engine company Unity |website=[[Axios (website)|Axios]] |date=August 9, 2022 |first=Kia |last=Kokalitcheva}}</ref> Later that month, Unity's board rejected the offer and committed to complete its acquisition of ironSource.<ref>{{cite news |url=https://www.reuters.com/technology/unity-software-rejects-applovins-1754-bln-takeover-offer-2022-08-15/ |title=Unity rejects AppLovin's takeover bid, to stick with ironSource buyout |date=August 15, 2022 |work=[[Reuters]] |first1=Nivedita |last1=Balu |first2=Krystal |last2=Hu |first3=Eva |last3=Mathews}}</ref> The ironSource merger was completed in November 2022.<ref>{{Cite web |first=Bryant |last=Francis |date=2022-11-07 |title=Unity's Marc Whitten explains what comes after the IronSource merger. |url=https://www.gamedeveloper.com/business/what-s-next-for-unity-after-the-ironsource-merger- |access-date=2023-01-06 |website=Game Developer |language=en}}</ref>

In January 20032023, 284 employees were laid off.<ref>{{Cite news |date=2023-01-18 |title=Unity lays off almost 300 staff |url=https://www.eurogamer.net/unity-lays-off-almost-300-staff |access-date=2024-03-02 |work=Eurogamer.net |language=en}}</ref> In September 2023, Unity announced changes to its pricing model, introducing new Unity Runtime Fees, which charges developers based on installs past a certain threshold, depending on their Unity plan.<ref>{{Cite web |title=Unity plan pricing and packaging updates |url=https://blog.unity.com/news/plan-pricing-and-packaging-updates |access-date=2023-09-14 |website=Unity Blog |publisher=Unity Technologies |language=en}}</ref> These changes were met with negative reactions from the developer community, with many expressing dissatisfaction and concerns regarding the increased financial burden as a result of the new pricing structure, including possible damages from inaccurate installation count estimates or malicious actors, as well as fee thresholds applying retroactively.<ref>{{Cite news |last=Batchelor |first=James |date=2023-09-13 |title=Unity clarifies new fee plans amid developer backlash |language=en |work=GamesIndustry.biz |url=https://www.gamesindustry.biz/unity-clarifies-new-fee-plans-amid-developer-backlash |access-date=2023-09-14}}</ref><ref>{{Cite news |last=Wales |first=Matt |date=2023-09-12 |title=Unity reveals plans to charge per game install, drawing criticism from development community |language=en |work=Eurogamer.net |url=https://www.eurogamer.net/unity-reveals-plans-to-charge-per-game-install-drawing-criticism-from-development-community |access-date=2023-09-14}}</ref><ref>{{Cite news |last=Orland |first=Kyle |date=2023-09-13 |title=Unity's new "per-install" pricing enrages the game development community |language=en-us |url=https://arstechnica.com/gaming/2023/09/game-developers-unite-against-unitys-new-per-install-pricing-structure/ |access-date=2023-09-14}}</ref> Offices across the United States were temporarily shut down and authorities were contacted due to targeted death threats.<ref>{{cite web|url=https://www.polygon.com/23873727/unity-credible-death-threat-offices-closed-pricing-change|title=Unity closes offices due to 'credible death threat'|last=Carpenter|first=Nicole|date=September 14, 2023|website=[[Polygon (website)|Polygon]]|access-date=September 14, 2023|archive-url=https://web.archive.org/web/20230914181013/https://www.polygon.com/23873727/unity-credible-death-threat-offices-closed-pricing-change|archive-date=September 14, 2023|url-status=live}}</ref> Unity released revised terms in response to the negative feedback on September 22, 2023. These changes include having no fees for Unity Personal, which can be used for projects funded up to $200,000 instead of $100,000, fees would only apply to games developed with Unity 2024 and onward without any retroactive fees, and that the fee would be based on self-reporting, the lesser of 2.5% of monthly revenue or a calculated amount based on monthly engagements.<ref>{{cite web | url = https://www.ign.com/articles/unity-to-roll-back-some-key-aspects-of-runtime-fee-policy | title = Unity to Roll Back Some Key Aspects of Runtime Fee Policy | first = Alex | last = Steadman | date = September 22, 2023 | accessdate = September 22, 2023 | work = [[IGN]] }}</ref> Despite the partial walkback, according to [[Wired (magazine)|WIRED]], the company's reputation could be irreparably damaged,<ref>{{Cite magazine |last=Farokhmanesh |first=Megan |title=Unity May Never Win Back the Developers It Lost in Its Fee Debacle |language=en-US |magazine=Wired |url=https://www.wired.com/story/unity-walks-back-policies-lost-trust/ |access-date=2023-09-25 |issn=1059-1028}}</ref> with some developers having stated they would not return to using the company's services or products over lack of trust going forward.<ref>{{cite news |last1=Batchelor |first1=James |date=18 September 2023 |title=Devs on Unity Runtime Fee: "The trust is gone forever" |language=en |work=GamesIndustry.biz |url=https://www.gamesindustry.biz/devs-on-unity-runtime-fee-the-trust-is-gone-forever |access-date=20 September 2023}}</ref>

On October 9, 2023, Unity announced that Riccitiello would be leaving the company amid controversy, appointing [[Jim Whitehurst|James M. Whitehurst]] as interim CEO and president.<ref>{{Cite web |last=Hollister |first=Sean |date=2023-10-09 |title=John Riccitiello is out at Unity, effective immediately |url=https://www.theverge.com/2023/10/9/23910441/unity-ceo-president-john-riccitiello-out-retire |access-date=2023-10-09 |website=The Verge |language=en}}</ref><ref>{{Cite web |last=Takahashi |first=Dean |date=2023-10-09 |title=John Riccitiello steps down as CEO of Unity after pricing battle |url=https://venturebeat.com/games/john-riccitiello-steps-down-as-ceo-of-unity-after-pricing-battle/ |access-date=2023-10-09 |website=VentureBeat |language=en-US}}</ref>