# Unity Discontinues Controversial Runtime Fee: A Year of Grievances and New Pricing Adjustments
Unity Technologies, the creator of one of the leading cross-platform game development engines, has formally withdrawn its contentious **Runtime Fee**. This fee, which would have billed developers based on game installs instead of the conventional per-seat licensing system, encountered significant backlash from the development community. The cancellation of the fee occurs precisely one year after its initial declaration, highlighting a major alteration in Unity’s strategy regarding pricing and relations with developers.
## The Runtime Fee Dispute
In **September 2023**, Unity revealed a new pricing model that incorporated a **Runtime Fee** linked to game installs. This fee was set to impact games that exceeded specific revenue and install thresholds, with developers utilizing the free **Personal** tier being charged **20 cents per install** once their game accrued **$200,000 in revenue** and surpassed **200,000 installs**. For **Pro** and **Enterprise** users, the fee would be marginally reduced, applying after **$1 million in revenue** and **1 million installs**.
Although Unity characterized the Runtime Fee as a necessary move to sustain investments in the platform, developers perceived it as an inequitable and unpredictable expense, particularly harmful to thriving indie games. The fee structure threatened to disproportionately affect smaller developers who achieved success, potentially diminishing their profits or compelling them to transfer costs to consumers.
The reaction was immediate and intense. Developers voiced their anger on social media and gaming platforms, with many contemplating migrating to alternative game engines such as **Unreal Engine** or **Godot**. Some even weighed the option of ceasing updates to their games to escape retroactive fees, as Unity initially proposed to include installs counted before **January 2024** in the fee assessments.
## Unity’s Reaction and the Road to Abandonment
In light of the extensive criticism, Unity attempted to adjust the Runtime Fee to mitigate its repercussions. The firm eliminated retroactive install counting and capped fees at **2.5% of revenue**. Nevertheless, these modifications failed to assuage developers’ grievances, as many felt Unity had broken their trust.
The uproar also brought to light concerns regarding Unity’s **terms of service**, which seemed to enable the company to implement sudden and substantial changes to its pricing model without advance notice. This raised further worries about the reliability and predictability of Unity as a sustainable development platform.
In **October 2023**, Unity’s then-CEO **John Riccitiello** announced his resignation, which many within the game development community welcomed with relief. Riccitiello was viewed as a divisive figure, with some developers attributing Unity’s tarnishing reputation to his aggressive monetization tactics. His exit, although celebrated by some, did not completely restore confidence in the company.
By **January 2024**, Unity was confronting further obstacles, including a **significant wave of layoffs** that eliminated **25% of its workforce**. These job cuts were partially linked to financial challenges stemming from a series of acquisitions made during Riccitiello’s leadership. Unity’s financial reports suggested that the Runtime Fee would have negligible implications in 2024 but was projected to “increase from there as customers embrace our new releases.”
However, in a surprising development, Unity declared in **September 2024** that it would completely **eliminate the Runtime Fee**. In a blog post credited to Unity’s new President and CEO, **Matt Bromberg**, the firm acknowledged that the fee had been an error. Bromberg underlined the significance of fostering a “partnership built on trust” with developers and conceded that although price hikes were necessary, they ought not to take the form of “a novel and contentious new strategy.”
## Revised Pricing Structure
With the Runtime Fee now abolished, Unity has rolled out a new pricing framework designed to be more transparent and consistent for developers. The updated structure features the following revisions:
– **Unity Personal**: The free tier remains intact, but the revenue/funding cap has been elevated from **$100,000 to $200,000**. This adjustment permits more small developers to continue utilizing Unity without incurring extra expenses.
– **Unity Pro**: For developers who surpass the limits of the Personal tier, Unity Pro will experience an **8% price increase**, raising the cost to **$2,200 per seat**. This tier is tailored for mid-sized developers requiring more advanced tools and assistance.
– **Unity Enterprise**: For major studios and organizations with over **$25 million in revenue or funding**, Unity Enterprise will see a **25% price increase**. This tier encompasses customized packages and supplementary support tailored to the needs of high-revenue developers.
Bromberg also mentioned that Unity intends to return to a more conventional pricing model, with potential price adjustments contemplated only on an **annual basis**. Furthermore,
