Unity Technologies: Difference between revisions

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In January 2023, 284 employees were [[2023–2024 video game industry layoffs|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 May, Unity announced it would layoff 600 jobs, about 8% of its global workforce.<ref>{{Cite news |last=Needleman |first=Sarah E. |title=WSJ News Exclusive {{!}} Unity Conducts Its Third and Largest Round of Layoffs in a Year |url=https://www.wsj.com/articles/unity-conducts-its-third-and-largest-round-of-layoffs-in-a-year-48fdafe1 |access-date=2023-05-03 |website=WSJ |language=en-US}}</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> Another round of layoffs was announced in January 2024. Unity cut 1,800 jobs, or 25% of its workforce, as part of a "company reset".<ref>{{cite web |last=Roth |first=Emma |date=January 8, 2024 |title=Unity is laying off 25 percent of its staff |url=https://www.theverge.com/2024/1/8/24030695/unity-layoff-staff-25-percent |accessdate=January 8, 2024 |work=[[The Verge]]}}</ref> In May 2024 the company announced that Matthew Bromberg had been appointed to the role of permanent CEO, with Jim Whitehurst taking the position of Executive Chair of the board and Roelef Botha resuming his duties as Lead Independent Director of the board.<ref>{{Cite web |title=Former Zynga COO Matthew Bromberg is the new CEO of Unity |url=https://www.gamedeveloper.com/business/former-zynga-coo-matthew-bromberg-is-the-new-ceo-of-unity |access-date=2024-05-07 |website=www.gamedeveloper.com |language=en}}</ref> In the year to May 2024, the stock price for Unity declined over 60%, with the decline attributed to business decisions over the period including the runtime fee policy.<ref>{{cite web |title=Is Unity Software Stock a Buy Now? |url=https://www.aol.com/unity-software-stock-buy-now-120000065.html?guccounter=1 |website=www.aol.com |date=3 July 2024}}</ref>
 
== Corporate affairs ==