Where Does Game Development Stand With the Unity News?

The announcement of Unity’s change in pricing model sent shockwaves across the game development industry.

Holding nearly 50% of the market share, Unity’s decisions have far-reaching consequences.

Unity’s actions have direct effects on the market, guiding other companies and directly affecting a significant portion of game developers.

So when they announced price hikes this September, the decision caused disarray across the whole market as it put enormous pressure on smaller developers who might not have the all-encompassing budget of Activision.

While a game engine isn’t the only thing that should be in focus, it’s obviously one of the most pivotal factors in game creation. But whether you’re a developer or not, how this situation plays out will shape the near future of games and development.

The Unity Drama Explained

Unity released an announcement this September, announcing a new pay-per-download pricing model set to roll out on January 1, 2024. The new scheme would charge developers a flat fee each time a game using Unity software is installed. This "Unity Runtime Fee" was justified as a way for developers to retain financial gains from ongoing player engagement — charging $0.20 per game download once a game reaches 200,000 downloads versus the original $0 per install.

However, the new fees would only apply after a game met specific revenue and download thresholds, which would differ based on a developer's subscription tier. Essentially, this meant fees would differ based on different markets. "Standard" markets like the US and UK would have to pay more compared to "emerging" markets like India.

Not surprisingly, this announcement threw the game development community into an uproar, especially among smaller, indie, and marginalized developers.

Why?

If your game were to get downloaded on multiple devices (for the price of one) or even pirated, developers would have to absorb the extra costs. That’s why Unity decided to repeal some of the price changes.

Unity’s Takes a Step Back

With the avalanche of criticism, Unity decided to remove the “Unity Runtime Fee” for devices that have already downloaded the game. If you've got game demos or you're part of subscription platforms like Game Pass, those won’t get tagged with additional costs.

But with some developers planning for new game releases in the coming months, this price change affects their bottom line. Small developers already work with tight budgets, and these price changes could turn a slightly profitable game into an unprofitable one.

Plus, some of the pricing updates are staying the same, with Unity Plus subscribers now needing to shift to the more expensive Pro tier ($2,000 per year versus $400 per year).

Where Does This Decision Leave Small Developers?

While the future might appear overly negative for small and indie developers, there might be a silver lining to the price increases. When companies decide to increase prices, it makes room for competitors to step in and grab shares of the market.

And when 50% of the market is dominated by Unity, chances are that many developers (especially smaller ones) will switch to other platforms. Plus, a notable proportion of Unity's user base consists of indie devs.

Here are some companies that might grab some market share and attract indie developers:

• Gdevelop: An open-source, drag-and-drop game engine that gives coding beginners a simplified way to make 2D and 3D games.

• Godot: An open-source game engine with support for 2D and 3D development appealing to developers seeking customization without licensing fees.

• Soba: A no-code gaming platform and community that brings affordability and usability to both an existing game development market while making the barrier to entry much lower for brand-new developers.

  
  

Each of these platforms has a different learning curve, with Gdevelop and Soba being no-code platforms. Unfortunately, that might discourage developers from making the switch.

While each platform requires developers to learn a different user interface, they all include extensive resources, community forums, and online education through YouTube — making learning how to make a game as simple as following directions.

It's a sort of democratization of game development where you no longer need an extensive programming background or college degree to bring your creative vision to life. In a way, Unity's pricing shift could be a catalyst for many to explore these burgeoning platforms.

As the saying goes, "Necessity is the mother of invention," and in this case, the necessity to adapt could lead to an era of increased innovation and diversity in game development.

While Unity’s decision will have a significant impact on smaller and indie developers, it’s paving the way for innovation overall — where new companies can step in and make the process easier and cheaper for everyone.