Unity Software CEO John Riccitiello has been selling off company shares ahead of the recent announcement of new fees for Unity Runtime. This move has raised eyebrows and sparked criticism from game developers and fans alike.
The newly introduced Unity Runtime Fee applies to games that meet specific revenue and installation criteria. Games on Unity Personal and Unity Plus that have generated $200,000 or more in the last year and reached 200,000 installations will be subject to the fee. Similarly, Unity Pro and Unity Enterprise games that have earned $1 million in revenue over 12 months and achieved a million installations will also be charged.
Under the new fee structure, Unity will charge $0.20 per install for its Personal and Plus versions, regardless of the number of installations exceeding the threshold. Pro and Enterprise versions will have sliding scale fees.
Critics argue that these fees could easily surpass the actual earnings of developers, particularly for games with high installation counts but relatively low revenue. Some developers fear that they may end up owing hundreds of thousands or even millions of dollars to Unity, exceeding their game’s profits.
Just six days before the announcement, Unity Software CEO John Riccitiello sold 2,000 company shares. This follows a trend, as he has sold over 50,000 shares in the past year without making any purchases.
Riccitiello’s previous role as CEO of EA has also come under scrutiny, with many referencing his comments from last year about game developers and their focus on monetization during early stages of development. This has led to speculation about his motives behind the new fees.
Interestingly, Unity’s stock briefly dropped to $37.53 after the announcement, down from the $40 at which Riccitiello sold his shares. It has since stabilized around $38.
In conclusion, Unity Software’s CEO John Riccitiello’s decision to sell off company shares prior to the announcement of new fees for Unity Runtime has raised concerns and sparked criticism. The new fees have been met with backlash from game developers and fans, who fear that they may end up owing more money to Unity than they actually earned from their games.
Source: DOTESPORTS
