nanoUFOUnity May Never Win Back the Developers It Lost in Its Fee Debacle
The_Hideous_OrgalorgI wonder if this will result in the shareholders holding the ex-EA CEO accountable for destroying their revenue stream.
Good luck. If the SEC hasn’t already started building a case against him for insider trading, then nothing is going to happen to him. He’ll get a golden parachute and scurry off to ruin some other company.
"Selling shares before the announcement" was a pretty egregious misrepresentation. He has scheduled pre-registered sales on a regular basis because he gets paid partly in stock.
It was always going to be relatively soon after a sale of stock.
sinoJust want to add you’re right but what pisses me off is that they still can influence decisions based on this. Let’s say his shares are sold at x day, just do some decisions before that and boom your auto sell share price is now either higher or lower. Only because it’s predetermined they still influence it and SEC now can’t do shit.
This has nothing in common with insider trading and doesn't resemble it in any way. The shares he sold weren't a relevant proportion of his ownership. He didn't sell then deliberately tank them. He sold then announced something he thought would improve the value of his big stake in the company. The decision almost definitely cost him a lot of money by substantially lowering the trajectory of his company's ability to maintain market share.
He sold then announced something he thought would improve the value of his big stake in the company.
In what universe?
If he didn’t think the announcement would improve the value of the company, why did they do it?
Exactly. It was plopping his dick on the table, then realizing "oh shit, no one actually is impressed by this".
Insider trading would be more "I know we're about to get sued for this egregious fuckup and have no defense, so I'm going to sell before the news leaks". Strategy knowledge can be part of insider trading, but it would tend to be more buying shares because you have advanced knowledge that a highly lucrative contract has been signed before the announcement. It would be harder to have selling because of a strategy decision be insider trading unless you were opposed to it internally, because decisions you make are intended to make the shareholders (you) money.
So he would get a huge bonus from the short term gains, and then dip before the company suffered the long term damages.
As if you can’t schedule your announcements to fall just after the scheduled stock sales… Or just before them, if you want.
Don’t you bring facts into this! We want to be outraged!
Being serious though, they ought to be investigating whether there were any changes in those sale orders. If they’ve been the same and unchanged for the last two years or some long period of time, I don’t think there’s a case. But if they’re was an adjustment a month or two ago, that would be very problematic.
You know, that might just make it worse. As in, this wasn’t some 5d plot, he genuinely thought this would work.
I think he might autosell his stock so that wouldn’t be insider trading, but since of the board members might.
P03 LockeHa, yeah, that defense worked so well for Martha Stewart.
VaryagWhy, it was THEIR idea in the first place.
Yes, it was their genius idea, if it worked. Must be blamed on somebody else if it does not work.
This was a board decision, not the CEO as an individual.
They are all equally resonate and if they fire him it’s to save face and kick him as a scape goat
Going to need proof of that.
In nearly every company, CEO makes the plan. Board wants a process and results. CEO is the one who spearheads it.
I think you mean a nice golden parachute to reward them for taking the heat, so they can swap in a new expensive face to implement slightly less unpopular fees.
The American dream.
He resigns. gizmodo
bbmbHonestly, I don't blame them. It took Unity 10 days after announcing this awful change to backtrack to a normal revenue cut. That 10 days was filled with justified outrage from a ton of developers to the point of Re-Logic donating $100k to Godot and FNA in protest.
Those ten days were them seeing if it would ‘blow over’. Can’t trust them an inch now
CorkyskogWhen will they learn? You could possibly pull that crap Business to consumer… BUT B2B? He’ll no!
That’s what confused me the most. When your customers are consumers, screwing them over might be no big deal. But when your customers are businesses, how were you planning to get away with something like this where anything involving fees in the 6 to 9 figures is game changing. That’s, “Cheaper to move my business elsewhere” levels of money.
Yup. They were hoping it would fall out of the news cycle and people would forget about it.
The harsh truth is even if they lose half of their current users they will end up making more anyway, even with the amended changes. They planned to lose a large chunk of their user base, regardless. The “seats” model is dead now that AI is changing how game development is done from the ground up.
Sure, but if they’d implemented the revised changes they wouldn’t have lost so many users. And despite their messaging, they did already speak to some devs who’d already told them this would be a disaster, but they tried it anyway, and in a retroactive way that completely disregarded prior promises regarding changing EULA agreements, so there’s no faith in this not still changing.
They fucked it up. Plain and simple.
Nah this went really bad for them. Even if they do make more, it will almost certainly be short term. Godot got so much free advertising. It firmly sat itself next to unreal as far as who should be choosing it, but it is definitely the inferior engine if you are making AAA. It's going to get cut from the high by unreal and the low from Godot, defold, and even gamemaker.
I don't get this weird apologist attitude. Let us not forget Unity just spent over $4 billion less than a year ago buying the malware ad service ironsource. They are not profitable because they make bad business decisions. This was one more. And in all likelihood we will see the sale of unity before too long. And it will probably be less than the $20 billion offer they had prior to the ironsource purchase.
They are not profitable because they make bad business decisions.
Exactly this. Just like how reddit very quickly made enough in reddit gold sales to cover their server costs for decades, the only reason it’s operating at a loss is because they’re running it that way.
it’s a known strategy in tech startups and most non inventory based businesses in general (think moviepass) to try and get as much market share as possible, even operating at a loss, and then slowly turn up the prices on your users once they are locked into your system and make back the lost revenue over time. I don’t agree with it either, but the y-combinator business tech crowd seem to love this model, so I can’t really say if it’s a bad decision or not.
Captain AggravatedCan you cite an example where this has actually worked/led to a stable business model?
No, but once again, I did say that
I don’t agree with it either
I can however, point to evidence that it’s a popular business model, if you don’t mind accepting hacker news and y-combinator articles, as well as YouTube media of startup CEOs in earnings calls, but I refuse to defend it otherwise. These are often people with lots of money and advanced stem + business degrees however, so Im not going to sit here and act like I easily know better than them. I can say it did work for Google, but this is after they already were dominating with ad revenue and had the means to slowly introduce ads into every platform they owned.
Lots of SaaS business models adopt this hyper revenue growth, but cash flow negative, unprofitable model. However this business model was only possible with a low interest rate environment of the past 15 years. It was relatively easy to get approved for loans and venture capital funding.
Think of companies like Uber and AirBnB. Their mission is too undercut their competition and be unprofitable until they become a monopoly. Once they get monopoly market share, they will try to show pricing power and raise prices on their consumers once their is no competition.
Compare that to Google or Facebook, who have always been profitable.
Interest rates are higher now so it is becoming more difficult to get cheap loans and fundraising. It will be interesting to see how this unprofitable model will survive or not.
CoderKatAmazon undercut like crazy and is utterly massive today. They’re basically the online shopping company.
Amazon is a goods-based business though, they ship massive amounts of inventory.
I can cite an example of it with an inventory based company. KIA sold their cars at damn near a loss in the US for a long time to get a good foothold. And it worked. Iirc they had a bogo on cars at one point even.
honestly as shitty as the changes were and of course they were trying to make more money but they were actually attempting to help devs at least financially. For many use cases the install fee would come out as less than a 1% rev share. It was the other shit that made it worse.
if you’re interested this is the insight from a tech investor who is familiar with the situation from the inside, but remains unbiased as someone not employed by unity.
threadreaderapp.com/…/1702054746411221386.html
(ironic considering we’re talking about unity but you may need to scroll thru the shitty ads to be sure you can read the whole post).
I think they will lose some already established studios that can afford to retool and reskill on another engine. But I think the vast vast majority of current unity developers are breathing a sigh of relief that they /dont/ need to reskill or retool on another engine.
Unity is still on shaky ground, but they have been since they went public. They need revenue, and their big ad revenue plan got ruined by dastardly apple protecting users’ privacy. Couple that with an upstart and promising engine following in Blenders footsteps. In five years, they might have lost every hand they had left to play. Irregardless of the missteps of the last week.
Every indie dev I’m following on YouTube has basically made a “My thoughts on the situation”-type videos where they talk about how they’ve “won against Unity” despite Unity basically going doing a textbook of the “Door in the face” technique to pass changes that would’ve been unpopular before this whole mess.
As soon as I heard Unity was back pedaling, I thought “there’s part 2 of the plan”
1: release abusive payment scheme to see just how much push back they get. If push back is minimal or losses are acceptable, end here and enjoy the profit.
2: if push back is strong, implement the actual payment policy that is still a significant increase, but less significant than the one above. And wait until the controversy blows over, which it will.
Yes, lots of developers will leave, lots of developers will choose a different engine for their new games, but there are a ton that will decide that it isn’t feasible to switch engines and plenty that will just eat the added cost. The thing that remains to be seen is just how much damage Unity has done in terms of new projects choosing other engines over theirs.
Claiming it’s “door in the face” is a little crazy here. If this is where they wanted to be, the “bait” changes could have been much much less bad than they were, and they still could’ve walked back to this.
Hell, they could have announced a 10% revenue split and it would’ve looked much better than what they pitched. And they could still walk back to 2.5% and looked like heroes. And it wouldn’t have lost them nearly as much trust. Nor made them look as bad.
If this was what they were trying to do, they’d have to have been even dumber to have made it this bad.
I’m more willing to bet they’re just fucking stupid. Or that a few people on the board had this as a fucking moronic idea, and the rest managed to take back control after it went totally sideways.
But claiming that it’s a door in the face requires them to be evil enough to do it, stupid enough to not realize they’re overdoing it, crazy enough to think it’d work, etc. It seems way too contrived.
delcakeAgreed, this whole Unity thing seemed more like they were surprised the peasants were revolting. Completely unaware of the danger of putting developer bills directly in to the hands of the end users, and not considering that a "trust me bro I counted how much you owe me" blackbox accounting method was too much to ask.
Also announcing that if you’ve ever used Unity they can just suddenly decide that you owe them more money.
Yeah, very few studios would retool an existing project. The real question is whether any of them will be picking unity for their next project. And will young people getting into game dev choose Unity over others? I don’t expect to see a sharp decrease in the number of Unity projects in the next year, but rather a slow descent, while Godot picks up steam and Unreal further cements itself as the professional’s tool.
All the tutorials and learning resources are hyper unity focused. That’s why so many game devs pick it up. That’s why they cornered the less than AAA industry. A young person will choose unity over the others for the same reason as they did last year. The endless resources to teach.
It’s likely almost all developers will pick unity for the next project too. All their knowledge is in unity, not Godot or unreal. We have this problem in other software industries too, some languages and frameworks are just better, but you can’t use them in your project because there are only five people in the industry that know how to use it well.
No shit
halfemptyDevelopers would be foolish not to begin transition plans off of Unity. The next Unity LTS version will still require the runtime fee.
They forgot they were B2B… where did the X suite and board go to Business school? 🤣
I am voting for the usual:
“My parents made a generous donation to the school I attended MBA”
I’ve worked on older projects such as 2019 and overall they all work very similar, so I’m assuming people will still start projects on 2020/2021 LTS given they’re fairly stable
The only thing I’d be keen on in be versions of unity would be if they came with better versions of FSR / DLSS baked in, instead of having to wait on third party addons
It shouldn’t. Developers have a moral responsibility to snub Unity now. A lesson must be learned here
Yeah, once you show that you can and will fuck someone over, they tend to lose trust in you.
CrazyEddie041There's also the matter of future developers to consider. I'm in the process of looking at game engines to learn, and Unity has decisively crossed itself off the list. Even if current studios and developers stick with Unity, startups and novices would be foolish to pick a game engine that might suddenly decide to charge them out the ass with little to no notice. Existing developers have the issue where they already have tools and experience with Unity, but newer folks don't.
Myself I really wish that Godot would finally start getting traction in being the most advanced and the most used game engine. And it’s free.
Just look at Linux - it’s free, most used and most customizable server platform, even tho paid alternatives (e.g. Windows server) exists. I wish Godot would become de facto standard game engine.
I doubt it will ever happen but if it dose that would be a perfect fit for open source, big studios could contributr and share parts of their progress between each other like big companies do in the Linux space and at that part it would probably become and stay the most advanced option fairly quickly because you can’t compete with a entire industry and community at once!
Godot should definitely be adopted more by the indie and small studio scene. I think there’s going to be some folks who slide over to Unreal because Godot’s 3D capabilities don’t even match Unity’s yet, but there’s some stuff it can do, and it’s in active development.
AkasazhSo you’d say you’re waiting for Godot…
… To become s success?
Clever hahaha
Honestly, then use it. The more folk using it, the more people will be contributing to it, the better it will get.
Like all open source projects, if people don’t want them to wither on the vine then people need to keep the projects active in any way they can.