Honestly, I don’t blame them for not wanting to put up with Unity’s unreliance. 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.
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. Once it stretched past a week, they started to panic because people weren’t dropping it, and had to plan an announcement to save face.
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. And they needed to do this because they were never profitable (the engine’s development costs hundreds of millions of dollars) and couldn’t really compete with unreal when it came to the type of customers they could actually pay for the engine from
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.
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 undercut your competition 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.
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.
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 ( youtube, maps, android). Popular platforms like DoorDash also have yet to become profitable, despite commanding a 70% market share on food delivery.
80 percent of unity users don’t pay and a large percentage of the 20% remaining don’t pay close to enough to maintain the engine. they did this on purpose, so it’s their fault, but it is the truth. most large studios these days that actually hit the numbers to pay unity are doing more with AI so they are paying less and those who the changes actually were attempting to make up lost revenue from. as I said, either way the “seats” model is dead regardless.
honestly as shitty as the changes were (and of course they were trying to make profit) 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, the install counting malware proposal, and the uncertainty behind the legitimacy of the numbers. (demos, piracy, repeated reinstalls)
if you’re interested in the insight from a tech investor who is familiar with the situation from the inside, but remains unbiased as someone not employed by unity, check this link for a good breakdown of what Unity’s leadership was actually thinking when they cooked this insanity up.
Honestly, I don’t blame them for not wanting to put up with Unity’s unreliance. 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
When will they learn? You could possibly pull that crap Business to consumer… BUT B2B? Hell 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. Once it stretched past a week, they started to panic because people weren’t dropping it, and had to plan an announcement to save face.
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. And they needed to do this because they were never profitable (the engine’s development costs hundreds of millions of dollars) and couldn’t really compete with unreal when it came to the type of customers they could actually pay for the engine from
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.
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 undercut your competition 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.
Can you cite an example where this has actually worked/led to a stable business model?
Amazon 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.
deleted by creator
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.
No, but once again, I did say that
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 ( youtube, maps, android). Popular platforms like DoorDash also have yet to become profitable, despite commanding a 70% market share on food delivery.
80 percent of unity users don’t pay and a large percentage of the 20% remaining don’t pay close to enough to maintain the engine. they did this on purpose, so it’s their fault, but it is the truth. most large studios these days that actually hit the numbers to pay unity are doing more with AI so they are paying less and those who the changes actually were attempting to make up lost revenue from. as I said, either way the “seats” model is dead regardless.
honestly as shitty as the changes were (and of course they were trying to make profit) 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, the install counting malware proposal, and the uncertainty behind the legitimacy of the numbers. (demos, piracy, repeated reinstalls)
if you’re interested in the insight from a tech investor who is familiar with the situation from the inside, but remains unbiased as someone not employed by unity, check this link for a good breakdown of what Unity’s leadership was actually thinking when they cooked this insanity up.
https://threadreaderapp.com/thread/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).