Unity is canceling the Runtime Fee and returning to its current seat-based subscription model, albeit with a price increase for Unity Pro and Unity Enterprise users.
The engine manufacturer introduced the controversial tax about a year ago. Initially, the Runtime Fee sought to charge developers a per-install fee once projects had passed certain milestones. It was a decision that left many users reeling, causing a massive backlash that eventually forced the company to rework – but not abandon – politics.
The fallout, however, was enormous. A number of high-profile creators slammed Unity and threatened to abandon the engine for what they felt was a massive betrayal of trust. Unity's failure to quickly address the issue and communicate effectively with customers only added fuel to the fire. Two weeks after the fiasco, Unity CEO and President John Riccitiello he left the company. Unity Creates Chief Marc Whitten he finally followed suit.
Unity is now attempting to correct course under the leadership of new CEO Matthew Brombergwho hopes that Runtime's cancellation can restore a partnership “built on trust.”
“I’ve been able to connect with many of you over the past three months and have heard repeatedly that you want a strong Unity and understand that price increases are a necessary part of what allows us to invest in advancing gaming. But those increases don’t have to come in a new, controversial form,” he said in a blog post sent to Game Developer ahead of the announcement.
“We want to deliver value at a fair price in the right way, so you can continue to feel comfortable building your business long-term with Unity as a partner. And we believe that if we are good partners and provide great software and services, we have only scratched the surface of what we can do together.”
“As a result, we will be returning to our current seat-based subscription model for all gaming customers later this year, including those adopting Unity 6, the most stable and high-performance version of Unity yet.”
Unity Returns to 'Traditional Cycle' of Annual Price Evaluations
Detailing what users can expect following the immediate cancellation of the Runtime Fee, Bromberg explained that Unity Personal will remain free and said the company will double its current revenue and funding cap from $100,000 to $200,000. “This means more of you will be able to use Unity at no cost. The Made with Unity splash screen will become optional for Unity Personal games built with Unity 6 when it launches later this year,” he added.
Unity Pro and Unity Enterprise will receive revised pricing and qualifying annual revenue thresholds effective January 1, 2025. These changes will apply to all new and existing Unity Pro and Enterprise customers when they purchase, upgrade, or renew a subscription on or after that date.
Here's how Unity explains how this will end:
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Pro Unit: An 8 percent subscription price increase to $2,200 per seat per year will apply to Unity Pro. Unity Pro will be mandatory for customers with more than $200,000 in total annual revenue and funding.
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Unity Enterprise: A 25 percent subscription price increase will apply to Unity Enterprise. Unity Enterprise will be mandatory for customers with more than $25 million in total annual revenue and funding. A minimum subscription requirement may also apply. Because this group of our largest customers has unique needs and uses many of our products and services, we will be reaching out to everyone in the coming days to discuss custom packages.
Bromberg said that Unity's decision to eliminate the Runtime Fee is part of a larger plan to “return to a more traditional cycle, considering any price increases only on an annual basis.”
“We remain committed to ensuring that if we change the terms of the Editor Software in ways that affect you, you may continue to use your current version of the software under the terms previously agreed to, as long as you continue to use that version,” he added.
“Cancelling the Runtime Fee for games and instituting these pricing changes will allow us to continue investing in improving game development for everyone, while also becoming better partners. Thank you all for your trust and continued support. We look forward to many more years of making great games together.”