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"F*** You, We're Not Paying" - Inside Unity's Runtime Fee Fiasco


Commissar SFLUFAN

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A major partner told John Riccitiello personally that it will not pay the Runtime Fee – and in the strongest possible terms.

 

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Sources from inside Unity and across the mobile games business and have told us:

 

  • September’s Runtime Fee policy was “rushed out” and driven by Unity and IronSource’s intense battle with Applovin over the mediation business
  • The firm’s long-term profitability problem and tumbling share price were also a factor
  • Unity/IronSource has been offering some partners money to switch their UA and admon from Applovin
  • There was resistance to the Runtime Fee idea within Unity, but those concerns were ignored; it was announced before many staff knew anything about it
  • In the second version of the policy Unity had planned to go with a 4% revenue share, but the reaction to the first announcement was so fierce it got knocked down to 2.5%
  • The new policies effectively never really applied to larger partners anyway – most will be able negotiate their own rates through their account manager

 

One Unity insider told us that a major mobile game publisher – and one of Unity’s biggest clients – met with John Riccitiello himself days after the first Runtime Fee policy was announced. They told him, in the words of our source: “Fuck you, we’re not paying.”

 

Multiple sources told us that in the week of panic that followed the first announcement, Unity planned to announce a 4% revenue share for games that earned over $1m, slightly undercutting Unreal Engine’s 5%. But the response was so fierce it was knocked down to 2.5% in the tweaked policy announced a week and a half later.

 

 

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  • Commissar SFLUFAN changed the title to "F*** You, We're Not Paying" - Inside Unity's Runtime Fee Fiasco
1 hour ago, Commissar SFLUFAN said:

Multiple sources told us that in the week of panic that followed the first announcement, Unity planned to announce a 4% revenue share for games that earned over $1m, slightly undercutting Unreal Engine’s 5%. But the response was so fierce it was knocked down to 2.5% in the tweaked policy announced a week and a half later.

It's incredible that they screwed up the obvious solution so badly that they're going to end up lowering their potential future revenue share by 37.5%, and that's before you consider the loss of potential revenue from devs that avoid Unity because of this whole fiasco.

 

Hard to recall a more impressive self destruction.

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