What was the Install Fee policy?
After making beyond the threshold of $200,000 USD in revenue, you are required to pay $0.20 USD every
time a
user installs any game you created with Unity. This $0.20 fee will be reduced to as little as $0.02
depending on other plans you're on (such as Unity Pro or Enterprise) and the volume of installs your
games receive. Unity has telemetry on every game you create with it, so Unity will know how much it
should be charging you every month.
What is wrong with the Install Fee policy?
The primary flaw:
The primary flaw is that the policy triggers a fixed fee to be paid based on an action (installs)
that is not tied to the developer earning revenue. This results in numerous problems that no other
game engine threatens to its developers. Here are the issues this flaw creates:
- Variable Rev. Share between different games. Ex: Purchasing a $5.00 game and installing it
charges $0.20, which is a 4% revenue share. If the game was $1.00 that would be a 20% revenue
share.
- Vairable Rev. Share month over month. Ex: A freemium moble game can be installed for free. If
the amount of installs are high but the amount of cash-shop purchases are low, the fees will be
unnecessarily higher that month.
- Unpredictable Rev. Share. Ex: If a user reinstalls a game they already bought, that's another
$0.20 that is charged to the developer. If the game was bought for $5.00, the revenue share for
that purchase increases from 4% to 8%.
- Malicious attack. Ex: anyone can setup a bot to rapidly install a developer's game forever,
stacking excessive fees which have no tie to the revenue made on the sale.
- New developers choosing to avoid Unity. Unity offers no extremely compelling reason to be
selected over other top engines like Unity, Game Maker, Godot, Ren.py and RPG Maker. Thus, to
threaten the chance of studio-ending amounts of fees will scare off any sensible would-be
newcomer. This, overtime, will erode Unity's marketshare, which inturn, would reduce the quality
of support, the community effect, the asset store's use, among other things. Unity would
eventually die as a company if it did not pivot (which it did 2 weeks after announcing the
policy).
How does it compare?
Unity (install-fees) |
Variable effective percent revenue share, potentially exeeding
100% revenue share. |
Unreal |
5% revenue share. (Otherwise, the most expensive AAA option)
|
Unity (pre-install-fees) |
$100+ USD per developer per year. |
Game Maker |
$100 USD. Perpetual license. |
RPG Maker |
$80 USD. Perpetual license. |
Ren.py |
Free Open Source Software (FOSS). |
Godot |
Free Open Source Software (FOSS). |
The secondary flaw:
The policy would be retroactive. Meaning, if you published a Unity game years ago, it would
still be subject to this new pricing policy. Note that prior to install-fees, developers read the
original pricing policy, weighed their options and chose Unity with the understanding of how much
the pricing policy will cost them. Since install-fees would be retroactive, their previous
understanding becomes void. They are forceably opted into this new policy without any way to
opt-out. They can try to take their games off the store, but that doesn't stop piracy, which will
also count toward install fees. Their only option would be to port their entire game to a different
engine to flee the fees that would otherwise destroy their financials.
But didn't Unity go back on the Install Fee Policy?
Yes. Within 2 weeks, they changed the entire policy, introduced Revenue Share, and increased the free
teir from $200,000 to $1,000,000. A year later, they completely cancelled the Runtime Fee policies
(install and revenue sharing) in favor of increasing subscription costs by about 85%. These changes
are much more financially managable for developers.
However, the fact that they could always change the policy again in the future haunts all Unity
developers. At any moment, you could be years into your career, and suddenly, legally, they can
switch up the policies in a way that could destroy your entire operation. I do not wish to live in
that fear. Thus, I switched to a FOSS engine; Godot.