What happened
In September 2023 Unity, the game engine company, announced a runtime fee that would be owed with every install of a game past a certain revenue level. TechCrunch described the response from the gaming community as universally negative, because the plan raised costs for many developers and suggested the people running Unity were disconnected from them. Unity issued a quick clarification softening the fee and then backtracked on the proposal.
On October 9, 2023, weeks later, Unity announced that CEO John Riccitiello was stepping down from his roles as president, CEO and board chair. Former Red Hat CEO Jim Whitehurst was named to the CEO role on a placeholder basis while the company searched for a permanent replacement, and lead independent director Roelof Botha became interim board chair. Unity shares were down 1.5% after hours, with third-quarter results due November 9.
Why it happened
The fee was charged per install of a game once it passed a revenue threshold, which raised costs for many developers.
TechCrunch said the plan suggested Unity's leadership was disconnected from the developer community.
The company had to issue a clarification and then reverse course, which kept the controversy in the news.
The lesson
Pricing changes for a platform's builders are a trust decision. Announcing a per-install fee without consulting the community cost the company its goodwill and its chief executive.
Aftermath
Riccitiello stepped down on October 9, 2023 and Jim Whitehurst took over as a placeholder while Unity looked for a permanent CEO. The leadership change created uncertainty for the engine as the company searched for a new team.
FOLLOW THE EVIDENCE