Don't forget Mobile or f2p gaming, Unity has a huge market share there and the margin are really low, adding ~0.20$ per user when most will makes you 0$ doesn't make sense at all.
Going with % of profit does.
Also it is quite unfair to cheaper games, indie 5$ games pay a much bigger share than a 40$ / 70$ game
> Unity isn't responsible for a bad business model. If you can't turn a profit after the fee structure, then don't choose Unity.
What? Unity is in fact responsible for the fee structure, they made it. It's not a force of nature, you don't get to change the business model under people's feet and then say, "huh, real irresponsible of you to choose a business model that doesn't work because we broke it; not our fault, you should have planned for us changing your revenue structure." Especially since as far as I can tell, Unity is retroactively applying this change onto existing games already on the marketplace.
God didn't make the business model bad, Unity did. And when those games launched, they launched under a different business model than what Unity is proposing. It is in fact not their fault that they didn't have the psychic ability to consider, "what if Unity randomly decides in the future to charge us every time a user installs one of our free games even if they only play it for 30 seconds?"
It's the developer's fault that they didn't magically guess what Unity's terms were going to be in the future? Be serious.
This is absolutely Unity's fault. If you buy a car to use Uber, and then half a year later Uber decides that your brand of car is no longer eligible to drive or that it needs to use a different fee structure, then it is Uber's fault that you are losing money.
If you launch an ad-supported game in 2020 under a revenue share and in 2023 Unity decides that it's bored of revenue shares and it wants you to start paying per install, it is Unity's fault that you are losing money. There just is no way to spin it otherwise. Are you seriously trying to blame developers right now for not being psychic?
I guarantee 100% that if we were having a conversation about Unity a year ago and someone said "I don't know if I should use Unity because what if they charge for installs in the future" you would have been making fun of that developer for having that concern. I promise you that a year ago you would not have predicted this change and you would have dismissed concerns about a theoretical structural change away from revenue shares as fearmongering.
> If I buy a Porsche in order to do Uber, it's not Uber's fault that I'm going to lose money.
Also once again, Unity's pricing model is not a natural consequence of the laws of physics. It's made up, Unity made it. The reason you'll lose money driving a porche for Uber is because the car will physically degrade, not because a bunch of board members at Uber got together and thought, "how can we extract more revenue from porsche owners?" Unity's revenue model is not the natural result of entropy, they decided to make it what it is.
If a company makes a product, say physical goods, and the price of manufacturing goes up but the company doesn't increase consumer prices in response, is it the manufacturers fault?
> you would have been making fun of that developer for having that concern
What a ridiculous statement, thinking you can somehow figure out how I'd reply "100%" just from reading this thread. You haven't provided anything so far in this conversation that has pushed the conversation forward, other than some ad-hominems. Great job.
Would you please not post in the flamewar style to HN? You started a doozy with this one and then continued to perpetuate it by breaking the site guidelines yourself. Seriously not cool.
> What a ridiculous statement, thinking you can somehow figure out how I'd reply "100%" just from reading this thread.
Am I wrong? :) I mean, feel free to prove me wrong, were you a year ago thinking about the possibility of Unity dropping a revenue share model completely? Was that a conversation anyone was having anywhere at all? Forget about your personal response, you might not have been thinking about Unity at all a year ago. Fine. Can you find a thread, anywhere at all, advising mobile developers not to use Unity because they might abandon revenue sharing?
I mean, apparently this is a thing they should have considered, right? So do you have an example of anyone, anywhere, considering it?
The closest I can think of is the general advice to game developers not to use proprietary tools period, but I don't think that's what you're suggesting given you're not on here now saying that nobody should use Unity because of the power imbalance.
> If a company makes a product, say physical goods, and the price of manufacturing goes up but the company doesn't increase consumer prices in response, is it the manufacturers fault?
Nothing physically has changed to force Unity to change prices, nor is Unity claiming that's the case. Also yes, in a scenario where you have an agreement with a company and the company changes the underlying prices of that agreement without warning, you would be correct in saying that it is certainly more the supplier's "fault" that a company goes out of business than the company owner. You might claim that the supplier didn't have a choice, but it would be ridiculous to claim that it's the buyer's fault that the prices changed.
And again, I have to keep saying this: there is nothing physical going on here and Unity the company itself is not claiming that they're changing their pricing model in order to cover new costs. Analogies to material costs don't really apply here.
> All pricing models are made up.
Yep. That's... that's what I said. And if you're asking "who's fault is it that the pricing model is what it is" it's probably the fault of the person who created the pricing model.
"Who's fault is it that this book has these words in it? The author's?"
> I mean, apparently this is a thing they should have considered, right?
I'm unaware of any business that doesn't consider pricing changes to strategic costs as future liabilities, especially when you don't have a contract with fixed terms. I don't see any evidence that Unity made guarantees that it's historical prices would remain consistent into the future. They're a public for-profit company, not a charity.
> Nothing physically has changed to force Unity to change prices
So not only can you predict what I would say, you have some sort of insights into Unity's cost structures and what it requires for them to keep Unity updated and competitive?
> but it would be ridiculous to claim that it's the buyer's fault that the prices changed.
It's not ridiculous to blame the seller that doesn't increase their pricing to keep a tenable margin. If my costs of goods increase but I keep my prices the same, it's my fault.
The only people making arguments about future Unity changes were Open Source weirdos like me who were warning against proprietary software in general, and we were regularly dismissed and called impractical. Nobody was considering that Unity would drop revenue sharing as a business model. If you go back and look at advice about the mobile markets, this was not a concern on anybody's mind.
Yes, people considered that pricing itself might change, but professionals in industry were not advising about the possibility of Unity changing away from a revenue share model, nor was this ever coming up as a concern in conversations about Unity's efforts to appeal to mobile developers. It's actually fairly easy to tell what people were thinking about Unity's pricing model given how recent the change is -- you can just go back and look at the many conversations people were having about engines.
I'll tell you what you won't see: you won't see a lot of people floating the possibility of installation-based pricing.
> I don't see any evidence that Unity made guarantees that it's historical prices would remain consistent into the future.
This isn't about a pricing change, it's about a change to the entire pricing model.
Nonetheless, you raise a good point. Unity could make arbitrary changes in the future as well. Doubtless, you would agree that it's irresponsible for devs today to use Unity under the current terms given that they have no control over what Unity's future pricing will be and given that pricing changes can be retroactively applied to games that they release before those changes?
Certainly you'd advocate today for the same level of responsibility and caution that you're arguing mobile developers should have had in the past, right? We have no idea what Unity's pricing model will be in 6 months, there's no guarantees in the contract -- and like you say, we need to consider that fact when building a business. So it would be the height of irresponsibility to advocate that everything is fine and the changes are no big deal and developers should just continue to use Unity.
Would you advise Unity developers today to decrease reliance on the engine and to be extremely cautious about building a business on top of a platform that can make arbitrary changes to pricing structures and that can apply those changes to existing products? Sure Vampire Survivors is profitable now, but as you correctly point out, there's nothing in the contract stopping Unity from changing that in the future.
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> So not only can you predict what I would say, you have some sort of insights into Unity's cost structures and what it requires for them to keep Unity updated and competitive?
Scary, right? I'm almost as psychic as you expect mobile developers should have been. ;) In my case it's not magic though, there's a trick to it. I get my information from having being active in game development spaces for a while and being familiar with the conversations that professionals were having about engine choice, and also from reading Unity's own press release and reading their own supplied justifications for why they're making the change.
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> If my costs of goods increase but I keep my prices the same, it's my fault
For anyone unfamiliar with how F2P and ad-supported games work, you can't just increase the cost of purchase for them, that's not really a thing, ad-supported games don't have a purchase cost to increase.
Because I'm not throwing out low-effort "woe poor game developer" vibes and am instead expecting more? I've actually made effort to model how this could work, rather than exclaiming "this is going to ruin indie game developers!".
Bad faith is making unsubstantiated claims and then getting mad when asked to back it up.
Yes, casual web games. Millions of units, high eight-figure to low nine-figure in gross sales. Tens of billions of online game sessions. I helped start an early online gaming site called GameRival.com that's most famous for Gold Miner and powering MySpace Games, and later led engineering for Grab.com (before the domain was sold off for taxis or whatever it is today).
I still run into Gold Miner clones at casinos even to this day.
So what's particularly funny about this is that Unity has since clarified that transmission of the runtime over the web via streaming or browser plays counts as an install, and your nine-figure sales compared to tens of billions of sessions would have been impossible to do profitably under these terms. And yet you're still on here defending them and somehow forgot that the F2P genre existed when doing your math.
If this is your background then this conversation is even more ridiculous; you should understand what it means to have more installs than profitable users because that was literally your business model. So why are you having trouble connecting the dots here about why developers would be concerned about these changes? By your math you were making pennies per-session. How are you having trouble understanding why even a 2-3 cent additional cost for each session would be a problem for that model?
We didn't build our games on a platform that required royalties. And when the tools we did use had unexpected cost increases, like Macromedia Flash Communication Server, we built our own to replace them. When the advertising model became untenable, we switched to downloadable purchases and a subscription model.
Unexpected changes to supply chain happen. Cost of goods go up, or sometimes even disappear altogether. That's business. It's an absolute punch in the throat that Unity has decided to apply these fees retroactively and with so little advance notice, but the onus is on the game developers to adapt and change their models to the new reality.
There seems to be plenty of outrage without me, so I don't understand why you seem so adamant for me to be sympathetic to businesses that are only profitable with the charity of another company. There's more than enough room for us to have different perspectives.
What's ridiculous is that you seem to think that there's only one right answer or reaction to this, and that it just happens to be yours.
> I don't understand why you seem so adamant for me to be sympathetic to businesses that are only profitable with the charity of another company.
That is... certainly a way to phrase the conversation we've had and it is certainly a way to characterize the complaints that developers have with Unity's changes, as if they're simply looking for charity handouts.
I would suggest that part of the free market and part of Capitalism and part of business is that when platforms make decisions that hurt a lot of developers, sometimes those platforms get criticized publicly for those decisions. That's part of how business works; bad publicity is one of the penalties businesses pay for bad PR decisions.
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Of course you don't have to sympathize with developers, but it's disingenuous for anyone to claim that these changes won't impact developers or that critics of these changes are just ignorant of actual game development practices.
> It's an absolute punch in the throat that Unity has decided to apply these fees retroactively and with so little advance notice
is a pretty different phrasing from how you talked about those developers in your other comments, and it's ironic that you seem to hold such disdain for them given that your own industry experience would not have been possible under the same terms that you dismiss in other comments above as having virtually no impact on the majority of games.
Again, I'm not trolling for sympathy here, I really don't care if you care about developers. It's just not good for you to spread misinformation about the potential impact of the changes or to act like the pushback to the changes is based on inexperience or ignorance rather than legitimate grievances about their potential impact on whether or not Unity is usable for entire segments of the market.
> It's just not good for you to spread misinformation about the potential impact of the changes
Everything being said so far is purely conjecture, and my guess is as good as yours as to how it will play out. People keep talking about all these poor F2P or ad supported games that are going to be harmed, but it's all just conjecture and guesses.
Personally I think app stores are filled with too much trash and I'm not going to be sorry to see some of it go. Obviously it sucks when anyone has to deal a situation that affects their livelihood, but them's the breaks.
Consider layoffs. I've been on both sides of the fence, so I can appreciate the companies perspective of preserving cash flow while acknowledging the hardship it places on those affected, but I'm not going to lose sleep over it or join in on the chorus of outrage that wants to attack companies for what people want to perceive as malice. It's just business, as impersonal as it sounds.
> The amount of outrage from people with no P&L or game development experience in this thread is unreal. [...]
> Everything being said so far is purely conjecture, and my guess is as good as yours as to how it will play out.
For the most part no one is calling you out for being mean or not liking F2P games, you got called out for very confidently dismissing worries about the changes as uninformed fearmongering based on back-of-the-napkin math where you forgot about the existence of one of the largest gaming categories on the market, and then doubled down (https://news.ycombinator.com/item?id=37483482, https://news.ycombinator.com/item?id=37485433) when that error was pointed out, and then blamed developers in those categories for not predicting the changes, and then revealed that your industry experience was in those same categories and that your games made the exact same choices about both funding models and proprietary engines/licensing that you were criticizing mobile developers for making.
I'm not trying to call you out for being mean to mobile game devs, I pointed out that "they should have seen this coming" is kind of openly ridiculous to say about an out-of-nowhere TOS change that almost inverts Unity's funding model -- especially given that it turns out you were in the same industry and obviously worries about funding changes didn't stop you from using proprietary engines.
Yes, sometimes businesses fail and bad stuff happens, I don't care what your attitude is about that. But "the universe is chaotic and sometimes difficult choices about funding need to be made" is a far cry from "well why did those mobile devs make the same decisions I made, they should have been more responsible."
> I can appreciate the companies perspective of preserving cash flow while acknowledging the hardship it places on those affected [...] It's just business, as impersonal as it sounds.
So this is not why you were called out, your attitudes towards the amoral nature of Capitalism aren't really the issue, you were called out because a bunch of developers said, "this is going to impose a hardship on us" and your response was "no it's not a hardship, these people don't know what they're talking about, this criticism is coming from people who don't know anything about making games, the new terms look quite reasonable."
And so the shift from that kind of confident statement about how these changes are a nothingburger to "well none of us have any idea what's going to happen" is the part that draws attention. If your original comment had been "it's anyone's guess what the impact of this will be" you would have saved everyone a lot of time.
My guess is it doesn't (they're talking about streaming via a platform like Stadia). Twitch streamers aren't distributing the runtime (arguably Gamepass streaming isn't either, but there is a clear tangible difference I think). Of course, Unity seems to be making this up as they go along, so who knows what they'll claim. But I can't imagine them trying to treat Twitch streams as installs.
So in the same situation where you lambast mobile games for not meeting profitability, you admit you've worked on games that would've fallen into that same situation.
And despite your belief that you were not dependent on any sort of intermediary platform I believe many games on that platform including Gold Miner were made using Adobe Flash, so you were in fact using a platform that could've been nickel and dimed just as much as Unity is now. Except you had the advantage of those games being made at the advent of the internet before rent seeking companies clawed their way into the middle.
The fact that you've been spreading misinformation or being downright disingenuous about many of the points you've been making makes me believe that many of your points are false.
Remember: It's impossible to criticize a business for unilaterally altering previously existing deals (this change is retroactive) because you should have been able to see in the future and know ahead of time that this change would hurt your business and thus Unity was the wrong choice.
Easy to say to mobile games studios that have ben using Unity for the last 10 years (or where in the process of releasing a game after multiple years of development) and didn't have to pay that tax before.
Also this will apply to every games made on Unity, so if you have a hugely popular game just above the threshold but make less than 0.20$ per user you effectively need to shutdown it down.
It isn't "bad business model" either, there is definitely a market for games where the revenue per user is less than 0.20$ (or whatever number).
Going with % of revenue is the sensible decision, just like Unreal does...
He was the person that turned EA into a microtransaction and arguably live-service game pioneer. For the worse.
"If you are six hours into playing Battlefield, you run out of ammo on your clip, and we ask you for a dollar to reload, you're really not very price sensitive at that time".[1]
> If you can't turn a profit after the fee structure, then don't choose Unity.
You've got the order wrong. This is about people who already chose Unity, and then they changed the fee structure. Changing engines is beyond nontrivial for a project in flight.
Going with % of profit does.
Also it is quite unfair to cheaper games, indie 5$ games pay a much bigger share than a 40$ / 70$ game