Unity Software Reverses Controversial Price Hike, Considers Cap on Fees
Video-game tool maker Unity Software Inc. announced on Monday that it is reversing major aspects of a controversial price hike after facing backlash from customers. The company is now considering changes, including implementing a cap on potential fees.
Last week, Unity caused an uproar when it revealed its plans to charge customers for every new installation of their game after a certain threshold. The decision sparked widespread protests and led several video-game makers to declare a boycott of Unity until the policy was revised.
In response to the outcry, Unity has devised a new plan that aims to address the concerns raised by its customers. As part of this tentative plan, the company will restrict fees to 4% of a game’s revenue for customers making over $1 million. Furthermore, installations that contributed to reaching the threshold will not be counted retroactively. These changes were conveyed in an all-hands meeting, the recording of which was reviewed by Bloomberg.
Unity also expressed regret over the controversy and issued an apology to its customers on Sunday. The company acknowledged that its previous pricing policy required adjustments and pledged to make the necessary changes.
Marc Whitten, an executive at Unity, stated that the company has not yet officially announced the latest changes because they are currently seeking feedback from partners. The aim is to ensure effective communication while avoiding a repeat of last week’s miscommunication that necessitated several clarifications.
One of the most contentious aspects of the policy was how Unity would track installations of its software. Originally, the company planned to use proprietary tools for this purpose. However, in the meeting on Monday, Unity’s management revealed that they would rely on users to self-report the data instead.
During the all-hands meeting, Unity’s CEO, John Riccitiello, emphasized that the revised policy aims to generate additional revenue from the company’s largest customers. He assured employees that over 90% of Unity’s users will remain unaffected by the changes. Addressing concerns about the breach of trust, Riccitiello admitted that the situation could have been handled better and reiterated the need for the company to show, not tell to regain trust. Future communications will be approached with greater care.
Riccitiello acknowledged the significant impact of the revised pricing plan, describing it as a transformative change for Unity’s business model. However, he also acknowledged that improvements could have been made in the handling of the situation.
This reversal of the controversial price hike and the consideration of a cap on fees by Unity Software marks a significant development for the company and its customers. Unity’s willingness to listen to feedback and make changes demonstrates its commitment to addressing concerns and maintaining positive relationships with its user base. The video-game industry will be eagerly watching to see how Unity bounces back from this controversy and how it continues to navigate its evolving business model.
