At Taanga Studios, we have been utilizing Unity as our primary game development engine since our inception. As experienced Unity users, we have closely followed the recent developments surrounding Unity's new "install" based pricing model.
In this analysis, we will explore the intricacies of Unity's pricing shift while considering the concerns and potential benefits that have surfaced within the game development community.
Understanding Unity's New Pricing Model
Unity's recent pricing model announcement has sparked significant discussion due to concerns about the lack of clear logistical and technical details regarding fees based on game installations. Critics argue that the model was introduced prematurely, with frequent changes in details, leaving developers exposed to financial risks.
Many have criticized Unity's communication for being vague, providing only partial explanations and promises without concrete guarantees. Among the critical issues is the absence of a reliable method for tracking reinstalls, differentiating pirated copies, or preventing abusive end-user behavior.
Controversies and Concerns
The primary criticism surrounding Unity's new pricing model is the uncertainty it introduces for developers. Fees for a single game installation can vary widely, potentially ranging from nothing to surpassing the game's total revenue. This unpredictability raises concerns about developers facing unexpected financial burdens and even potential debt.
Furthermore, developers are worried about how publishers will react to this uncertainty. Publishers may become hesitant to fund games created with Unity due to the risk of incurring additional charges.
The Fee Structure
While much of the discussion centers around the sliding scale of costs based on licensing and the number of installs, the specific fees are not the primary concern. Developers are more focused on the calculation of the number of installs, as Unity has made it clear that pricing could change at any time.
The real issue lies in defining what constitutes "an install." Unity's terminology in this regard has been inconsistent and unclear. While Unity explains the fee as being associated with each game download, the terminology used leaves room for confusion.
The Unity Runtime Fee; rates are determined by several factors, that includes the number of installations, the country where the installations occur, and the specific Unity subscription plan held by the user.
These rates are applied to the eligible installations once the game or app meets the minimum eligibility criteria. To provide a clearer understanding, the chart below illustrates the price per install in both Standard and Emerging-market categories, applicable once the lifetime install threshold specified in the Unity plan is exceeded.
Unity has attempted to clarify the concept of an install in multiple ways but has not provided a definitive explanation. This lack of clarity adds to the uncertainty for developers.
Another problem is mobile game developers who often make money from just 1-5% of their user base, through “Fremium” or “F2P” model, will be hit hardest. Let’s explore a hypothetical example where a developer earns $1 million from 100 million installs, about 1 Cent per install, and now to about 110% (1.1 Cents) of their revenue as per their new installation system based on tiers, this is downright outrageous and illegal, if someone at Unity had used Excel and calculated or even analyzed these things it wouldn’t be an issue.
How Are Installs Counted?
Unity's method for collecting install data has also raised questions. While they claim to use a proprietary data model, it's unclear how accurate this data is, as it is described as an estimate. Additionally, the question of GDPR and CCPA compliance has been raised, and Unity's response does not provide a clear picture of how they collect install data while complying with privacy laws.
Reinstalls, Piracy, and Abusive Behavior
Reinstalls have been a point of contention, with Unity initially suggesting that they would charge for reinstalls but later changing their stance to not charge for them. However, the question remains about how Unity intends to track reinstalls accurately.
The challenge of tracking and addressing piracy and abusive behavior is also a significant concern. Unity's statements regarding fraudulent installs and "install bombing" have been met with skepticism, as they acknowledge that identifying and preventing such behavior is complex.
Developers worry that they may be the product caused by abuse. Although they say they have addressed the issue with advanced algorithms to detect it, likcharged for pirated copies or reinstallinge any software, anything can be cracked. This puts game developers at risk.
The future of Unity Pricing
Unity's new "install" based pricing model has sparked intense debate within the game development community. While it aims to provide flexibility for developers, concerns about tracking, pricing unpredictability, and addressing piracy and abuse persist. The lack of clarity in Unity's communication has added to the uncertainty surrounding the model.
Developers are left to trust Unity's ability to address these issues effectively, which, based on the available information, has raised doubts within the community. As Unity faces pressure to address these concerns and provide clearer guidelines, the impact of this pricing model on the game development ecosystem remains uncertain. Some of the developers have forever lost their trust in Unity, it will be a hard sell now for Unity to gain back its customer base.
At Taanga Studios, we will continue to monitor this situation closely, considering how it may affect our future projects and the broader game development community. We are not going to shy away from shifting to Godot or Unreal for that matter.
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