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Unity cancels its controversial runtime fee after developer backlash

The Unity logo that accompanied the Runtime Fee announcement.
Unity

Unity, the company behind the popular game engine of the same name, has officially canceled its runtime fee — a controversial move introduced last year that outraged game developers.

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In a Unity website blog post, CEO Matt Bromberg said the company will be reverting back to its subscription model immediately after its new Unity Runtime Fee, which charged developers who met certain thresholds extra per user install, went over like a lead balloon when it was introduced last year. Not only was it confusing enough that the company had to make multiple clarifications, but users revolted. Some developers, like Innersloth, Aggro Crab, and Red Hook Studios, released statements condemning the move.

Unity will be moving back to a classic subscription model with a couple of changes to the tiers. The Unity Personal tier, which is free, will have a higher revenue ceiling: from $100,000 to $200,000. It’ll also only implement changes once a year instead of surprising developers like it did last year with the runtime fee. Here’s a quick rundown.

  • Unity Personal: Will remain free; the revenue and funding ceiling will be doubled from $100,000 to $200,000. The Made with Unity splash screen will become optional for Unity Personal games made with Unity 6.
  • Unity Pro and Unity Enterprise: Changes for all new and existing users effective on January 1, 2025
    • Unity Pro: 8% subscription price increase to $2,200 annually per seat. Unity Pro will be required for users who reach the $200,000 ceiling.
    • Unity Enterprise: 25% subscription increase. Will be required for users with more than $25 million of total annual revenue and funding. Unity will be contacting these customers to discuss customized packages.

In an exclusive interview with Game Developer, Bromberg said the move was part of a plan to “become a fundamentally different company” after years of raising prices, laying off workers, and making controversial decisions like the runtime fee. Bromberg says he spoke with customers and developers on the issue and how Unity could raise prices without turning its back on other people.

“I’ve heard time and time again that you want a strong Unity, and understand that price increases are a necessary part of what enables us to invest in moving gaming forward. But those increases needn’t come in a novel and controversial new form,” he says in the blog.

Initially, the runtime fee would charge developers up to $0.20 per user install after it released $200,000 within 12 months — but it didn’t properly explain what an “install” meant. The extra fee would have little impact on larger games on the Enterprise plan, but indie developers on the lower-tier plans could suffer. Later, the company clarified that the fee would take downloads on subscription services like Xbox Game Pass and charity bundles into account.

It eventually backtracked slightly on the Unity Personal inclusion, only applying the runtime fee to games not made on the Personal tier or that made less than $1 million in 12 months. That didn’t stop developers from moving to other engines, like Unreal or Godot.

Carli Velocci
Carli is a technology, culture, and games editor and journalist. They were the Gaming Lead and Copy Chief at Windows Central…
Unity backtracks on its controversial Runtime Fee plan following backlash
Art of Unity

Unity has finally backtracked some of the policies related it the Unity Runtime Fee announced last week following a wave of backlash from game developers. While the Runtime Fee isn't completely going away, changes were made so it's not as aggressive toward smaller developers and games that were already released. 
The Unity Runtime Fee was going to start charging developers up to a $0.20 fee every time someone installed their game. This decision was met with ire by game developers, who hated the short-notice, retroactive application. Devs felt the plan had oversights concerning subscription services, charity bundles, and piracy. In a blog post about the Runtime Fee changes, Unity's Marc Whitten admitted that Unity "should have incorporated more of your feedback before announcing our new Runtime Fee policy."

As for what's changing, the blog post states confirms that there will be no Runtime Fees for games made on Unity Personal or for games that made less than $1 million over the last 12 months. For developers using Unity Pro and Unity Enterprise, the Runtime Fee and applicability of Unity's terms have been adjusted so that it only applies to games made on the next LTS version of Unity. That means games already released or already in development in an older version of Unity won't be subject to the fee. 
Developers who want to circumvent the fee entirely can also choose to just give Unity a 2.5% revenue share if that's a lesser amount than what they would pay with fees. So, while the Runtime Fees aren't going away entirely, it's clear that the strong negative reaction from game developers has forced Unity to change course on what was a widely maligned plan.

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Unity clarifies what types of game installs count toward its new Runtime Fee
The Unity logo that accompanied the Runtime Fee announcement.

Unity angered lots of game developers earlier today when it unveiled its upcoming Unity Runtime Fee program, which takes a cut every time a Unity game is installed. It is particularly harsh for smaller developers using Unity Personal, as they will be $0.20 per install if their game makes over $200,000 within 12 months and gets over 200,000 lifetime game installs. There has been a lot of confusion over what exactly Unity defines as a "game install" in an industry full of subscription services, game bundles, and piracy. Digital Trends reached out to get clarification on what counts, and Unity responded.

When it comes to the multitude of ways players can acquire games, Unity says developers don't need to worry about fees related to trials, bundles, and giveaways. That said, developers who put their games in a subscription service like Xbox Game Pass or PlayStation Plus Premium will need to take these fees into account."Demos, trials, game bundles, and giveaways like the Humble Bundle do not count as installs," a Unity spokesperson tells Digital Trends. "Subscription services, like Game Pass, do count as an install."

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Game developers are furious over Unity’s new runtime fees
Art of Unity

The makers of Unity, one of the most popular video game engines, announced a new "Unity Runtime Fee" that is set to take effect next year. Game developers aren't taking kindly to the announcement as the new fee is financially punishing, especially for smaller developers using the Unity Personal and Unity Plus plans.
Unity went into more detail about this in a blog post on Tuesday morning. It explains that starting on January 1, 2024, games that pass certain revenue and install thresholds will have to pay the Unity Runtime Fee. For developers using Unity Pro or Unity Enterprise, games "that have made $1,000,000 USD or more in the last 12 months and have at least 1,000,000 lifetime game installs" will have to pay the fee. For smaller developers using the free Unity Personal plan, this threshold is for titles that "have made $200,000 USD or more in the last 12 months and have at least 200,000 lifetime game installs." It doesn't matter whether or not your game was released before January 1 or this announcement, the fee will still apply starting next year if your game boots up with Unity Runtime.
This chart breaks down the fees Unity game developers will have to pay. Unity
According to a chart produced by Unity, Personal and Plus plan holders will end up paying the big fee proportionally, with it being $0.20 per install. For indie titles that have cheaper price tags and don't make that much more than $200,000 but are installed a lot, the financial risk is clear. While Unity said it "set high revenue and game install thresholds to avoid impacting those who have yet to find scale, meaning they don’t need to pay the fee until they have reached significant success," this announcement is not going over well with indie developers, many of whom used Unity Personal because of its cheaper and more accessible nature.
A tweet from game developer Rami Ismail explains that this fee being tied to the number of times the game is installed makes using Unity a risk for developers accounting for subscription service downloads, charity bundles, a free-to-play model, giveaways, and even piracy. Tomas Sala, the developer behind the Falconeer franchise, tweeted about how he's worried about paying exorbitant fees in the future because he's given away so many keys to charity. "This is ball-and-chaining me for an engine I already pay every year," Sala says.
Ultimately, the Unity Runtime Fee will punish developers that release receive don't receive much in the way of revenue but do see high install counts, which is not uncommon in the indie space bolstered by Xbox Game Pass and Humble Bundle. For now, Unity seems to be sticking with its decision, but this is definitely something developers using one of the most popular game engines out there will need to keep in mind when releasing games in the future.
Update: In response to the backlash, Unity posted the following statement on X:
"Today we announced a change to our business model which includes new additions to our subscription plans, and the introduction of a Runtime fee. We wanted to provide clarifying answers to the top questions most of you are asking. Yes, this is a price increase and it will only affect a small subset of current Unity Editor users. Today, a large majority of Unity Editor users are currently not paying anything and will not be affected by this change. The Unity Runtime fee will not impact the majority of our developers. The developers who will be impacted are generally those who have successful games and are generating revenue way above the thresholds we outlined in our blog. This means that developers who are still building their business and growing the audience of their games will not pay a fee. The program was designed specifically this way to ensure developers could find success before the install fee takes effect. We want to be clear that the counter for Unity Runtime fee installs starts on January 1, 2024 - it is not retroactive or perpetual. We will charge once for a new install; not an ongoing perpetual license royalty, like revenue share. We looked for ways to lessen the impact on developers, and provide ways to bring the Runtime fee to zero. If you’re using any of our ad products, Unity Gaming Services or cloud services, etc. please contact us to discuss discounts. We are actively listening to and following your questions closely. Please review our FAQ on today’s announcement. We also invite you to continue to discuss these changes with us on our forums."

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