Unity Engine implements controversial Runtime Fee for game developers starting January 1

Starting from January 1, the popular Game Development Engine Unity, will implement a new charge called the Unity Runtime Fee for games developed using the Unity Engine. This fee will require game developers to pay for each game download, but it will only apply to games that surpass specific revenue and installation thresholds, depending on the developer's Unity subscription type. Things are getting a bit intense, and the initial reaction has been a lot of criticism from developers, and now you'll see why.

For Unity Personal and Unity Plus users, the fee will apply if annual revenue exceeds $200,000 or lifetime installs surpass 200,000. Unity Pro and Unity Enterprise users face higher thresholds of $1 million in annual revenue and 1 million lifetime installs. The fee per install above the threshold varies based on the subscription type, with Unity Personal developers paying the highest fee of $0.20 and Unity Enterprise accounts paying the lowest fee of $0.01 for installs above 2 million. This of course, has sparked concerns among developers of free-to-play games, who predominantly generate revenue through in-game purchases, as they may owe Unity more than they earn, as developer Michael J. Foxney aptly points out.

Not only that, but there is also concern about the implementation of this new policy in gaming subscription services like Xbox Game Pass or Playstation Plus, where numerous game downloads can occur simultaneously, potentially resulting in expenses for developers instead of benefits, as Stephen Totilo mentions. This also applies to other scenarios such as charity bundles, giveaways, re-installs from the same users, and piracy, which theoretically could also be counted as new downloads and thus, subject to additional charges (although Unity says it will use fraud detection tools and allow developers to report possible instances of fraud to a compliance team). Another detail to consider is the potential retaliation that malicious users could take to impact development studios, as Rami Ismail mentions. A new form of review-bombing could emerge, where angry fans initiate a mass install-campaign with significant financial consequences.

From January 1, existing games developed on Unity will also be subject to the Runtime Fees if they meet the thresholds. However, the fees will not apply to non-gaming applications developed using Unity. The company is also discontinuing its Unity Plus subscription tier, offering current Plus subscribers the opportunity to upgrade to Unity Pro at the Plus rate for one year. In response to the backlash, Unity has clarified that the fee will only affect a small subset of users and will not be retroactive or perpetual. Discounts will be offered for users of Unity's ad products, Unity Gaming Services, and cloud services. In the meantime, there is no doubt that many developers, like AggroCrabGames, will begin to opt for popular alternatives such as Unreal Engine or, in some cases, an open-source option like Godot Engine.