[HN Gopher] Unity is offering a runtime fee waiver if you switch...
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       Unity is offering a runtime fee waiver if you switch to LevelPlay
        
       Author : stuckinhell
       Score  : 73 points
       Date   : 2023-09-14 19:05 UTC (3 hours ago)
        
 (HTM) web link (mobilegamer.biz)
 (TXT) w3m dump (mobilegamer.biz)
        
       | linuxftw wrote:
       | I had a feeling some detail like this was missing from previous
       | reports (most of which I did not read entirely).
       | 
       | This is the right move. It represents an opportunity to dethrone
       | google in the ad display market, at least for gaming.
        
         | pjc50 wrote:
         | There really shouldn't be a gaming ad market. There are no good
         | ad-supported games, it's more corrosive to the gameplay than
         | even gatcha.
        
           | linuxftw wrote:
           | There are plenty of free to play games supported by ads that
           | are fun to play. It's also a great funnel for converting a
           | non-paying user into a paying user to disable the ads.
        
             | hutzlibu wrote:
             | It is also a great way to hook up kids as early as possible
             | to get the best tracking data and condition them to
             | whatever it is, that you want to sell them.
             | 
             | With paying for games, the cost is clear. With ads, it
             | isn't.
        
       | Pulcinella wrote:
       | This really does seem like Unity is destroying their business for
       | pennies. Mobile game display ads seem like a very, very low value
       | business to be in and I would imagine rates are going down all
       | the time. Unity may manage to wipe out AppLovin by burning down
       | the rest of their business, but winning king-of-the-hill on top a
       | pile of ashes does not seem to be a high value position.
       | 
       | Edit: It's as if Unreal wants to be king of glossy, fancy, high
       | value brochures, magazines, and books. Unity wants to be king of
       | phone book yellow page ads.
        
         | mortenjorck wrote:
         | It's kind of amazing just how big a Rubicon they crossed. Like,
         | they're going to walk the changes back at this point, I don't
         | think that's even in question anymore - but it won't matter.
         | They have broadcast loud and clear that they can and will alter
         | the deal.
        
           | hightrix wrote:
           | This is the biggest issue. Unity have clearly signaled that
           | the previous and current user agreements to use their
           | software are useless as they may be retroactively changed at
           | any time.
           | 
           | What company would put their bottom line at risk dealing with
           | these terms?
        
         | sp332 wrote:
         | Unity is already making more money from ads than from engine
         | license sales. Most developers don't pay for using the engine.
         | Ad sales pay for engine development.
        
         | pjc50 wrote:
         | Unity want a cut of Genshin Impact and see _everyone else_ as a
         | rounding error.
        
           | bbatsell wrote:
           | Except that Genshin will not be subject to it. Genshin Impact
           | is made by Mihoyo, a Chinese company. In order to sell Unity
           | licenses to Chinese customers, Unity Technologies created a
           | joint venture called Unity China, and, as is standard Chinese
           | government policy, it must be majority-owned and controlled
           | by Chinese entities. The majority owner of Unity China?
           | Mihoyo.
           | 
           | (On top of that, it makes no sense -- Genshin would be a
           | poster child for revshare: a single entity that has made
           | billions off microtransactions and that can be easily audited
           | in one go.)
        
           | jsnell wrote:
           | That explanation makes no sense, because their changes were
           | achieving the exact opposite. Genshin has a high ARPU, $0.01
           | per install will capture basically none of that. (Yes, $0.01
           | because the Unity fees are regressive, the fewer installs you
           | have the more you have to pay per install. Genshin Impact
           | obviously will fall into the bucket with the lowest cost.)
           | 
           | If the goal were to get a cut of Genshin while treating
           | everyone else as a rounding error, they'd have changed the
           | contract to be a revenue share. Or they would not have made
           | the install fees regressive.
        
         | alex_lav wrote:
         | > Mobile game display ads seem like a very, very low value
         | business to be in and I would imagine rates are going down all
         | the time
         | 
         | You'd be incorrect. It's a huge business. Less ads in general
         | more paid install services as a result of ads for games, but
         | both are huge businesses tbh.
        
         | pc_edwin wrote:
         | I'm not an industry expert (mobile gaming) but currently
         | (14/09/2023) App Lovin (NASDAQ:APP) is worth more than Unity
         | (NYSE:U) and they make twice as much in revenue with a higher
         | profit margin (less negative).
         | 
         | Its seems like advertising is where its at with mobile gaming
         | and I don't why that will change anytime soon.
        
         | belval wrote:
         | > Mobile game display ads seem like a very, very low value
         | business to be in
         | 
         | Might be much less prestigious than selling games that aren't
         | predatory, but Unity does in fact make a lot more money from
         | selling ads in mobile games than licensing and by a very wide
         | margin.
         | 
         | The sad truth is that for every "real gamer", there are 10+
         | regular mom and pop playing candy crush and buying boosts every
         | other day.
         | 
         | > Create Solutions (Game engine) second quarter revenue of $193
         | million was up 17% year-over-year.
         | 
         | > Grow Solutions (Ads) revenue of $340 million was up 157%
         | year-over-year
         | 
         | And an even better exerpt:
         | 
         | > This quarter we partnered with one of the leading dating apps
         | in the world, Tinder, to power their video ad monetization.
         | Expanding beyond games is part of our goal of providing the
         | most comprehensive platform for the App Economy, adding value
         | to customers.
         | 
         | Customers are not players here, they are the companies using
         | Unity.
        
           | cratermoon wrote:
           | So Unity is a digital ad company that gives away a game
           | engine, or sells it at a loss, as a way to sell ads targeted
           | based on what they know about the people playing the game. Ad
           | revenue is in decline across the whole industry, so now Unity
           | is looking to get a bigger slice of the pie by displacing
           | AppLovin as the data harvester/ad provider
           | 
           | Aside: I wonder how much user data Unity-based games harvest
           | from mobile devices. This may shed some much-needed light on
           | privacy, advertising and mobile games.
        
             | sitzkrieg wrote:
             | they really always have been when you think about it. shame
             | about the engine being a causality of war
        
         | TillE wrote:
         | There's just no way this change is actually gonna happen. Many
         | prominent indie developers have already announced they'll be
         | switching away from Unity for future projects, and you have to
         | think that larger studios are drawing the same conclusions. The
         | ship is sinking.
         | 
         | Unity will retract this. Switch to revenue share or whatever.
         | They'll eat a huge loss of trust because of this idiocy, but
         | they'll remain a relevant game engine. I just can't see any
         | other scenario.
        
           | syntheweave wrote:
           | They've gotten commodified. It's going to be like being
           | Oracle in a Postgre/MySQL world. You'll have some big legacy
           | customers who just can't switch. But the market as a whole
           | was primed to pack up and leave anyway. Gamedev has high
           | turnover, and what the new kids are going to gravitate
           | towards is what works immediately for them, which Godot
           | superseded Unity on out-of-the-box experiences a long while
           | back, and now has the tutorial content to accompany it.
           | 
           | What Unity has in its favor is mostly in the Asset Store, but
           | that's shifted towards being a commodity as well.
        
           | mholm wrote:
           | > but they'll remain a relevant game engine For a little
           | while. The problem is that Unity is a public company, merged
           | with a malware company, and (currently) headed by somebody
           | with no understanding of their own customers. But nobody
           | looking to make games right now is going to start using
           | Unity. Many indie developers are going to transition off, and
           | the major players who still use it are likely going to find
           | that Unity is going to start squeezing them to keep any
           | semblance of profitability. Maybe big games like
           | Genshin/Cities Skylines/Pokemon Go stick with it, but Unity
           | doesn't survive that transition.
        
             | CactusOnFire wrote:
             | I'm not a gamedev, but I am hoping one of the actionable
             | things from this situation is a call to action from the
             | gaming community to put together more open-source game
             | engine platforms, and for them to be more easily sharable.
             | 
             | I am sure there are reasons this is difficult, but with so
             | many industries built on open-source compliant tools,
             | gamedev feels like a no-brainer for it as well.
        
               | mschuster91 wrote:
               | Unreal is virtually open-source anyway, it doesn't make
               | any sense for anyone to invest the _billions_ of dollars
               | you need to even come close to it.
        
           | Cpoll wrote:
           | > they'll remain a relevant game engine
           | 
           | I think "loss of trust" is understating it. This is an
           | existential threat for lots of studios, and I can't imagine
           | them placing future bets on the platform.
        
             | gabereiser wrote:
             | This is exactly what's happening. Studios' strategies are
             | moving off of Unity. None of the ones I know are going to
             | do any further development in the engine on any future
             | projects. One studio is rewriting their game right now to
             | run on Godot. It's been the biggest exodus I've ever seen.
        
           | rodgerd wrote:
           | > There's just no way this change is actually gonna happen.
           | 
           | You under-estimate the degree to which companies can be
           | driven by an exec determined to have their way.
        
           | WillPostForFood wrote:
           | Revenue share is going to be worse for most indie developers
           | - the .20 install fee is only bad for extremely high volume,
           | low ARPU games. Basically mobile F2P. They deserve a
           | different payment option, but switching everyone to revenue
           | share is would be much worse for a typical Steam, $5+ indie
           | game.
        
             | [deleted]
        
             | __loam wrote:
             | The problem with install fees is that it's a potentially
             | unlimited financial risk.
        
             | deciplex wrote:
             | At least with revenue share the amount you owe is bounded
             | by the revenue you've realized from sales.
        
       | CaliforniaKarl wrote:
       | That seems like monopolistic behavior on Unity's part. Wouldn't
       | this action run afoul of antitrust laws?
        
         | badRNG wrote:
         | Typically antitrust laws apply to a company using a monopoly in
         | one industry to behave anti-competitively in another. Unity is
         | behaving terribly, but they aren't a monopoly, and this isn't
         | really even anti-competitive, it's just shitty. There's a
         | greater case that they aren't properly representing the
         | fiduciary interests of their shareholders.
        
         | drexlspivey wrote:
         | 30% market share is not a monopoly
        
       | everyone wrote:
       | I've been a pro Unity dev, as an employee and then a freelancer
       | running a small team doing contracts for 10 years. I think this
       | was in the back of my mind for a long time but yesterday a switch
       | just flipped in my head and I decided Unity are just not to be
       | trusted anymore, the company has lost all credibility and I never
       | want to use Unity for another project. I'm learning Godot atm.
        
       | doublerabbit wrote:
       | What I'd like to see is that this fiasco encourages studios to
       | produce their own engines rather than using the pre/existing
       | selection.
       | 
       | I'd happily wait another 5-7 years for a new game on a new engine
       | then have a new game in two years that feels identical to others.
       | 
       | And then open-source it and let the creativity roam free.
        
         | Dalewyn wrote:
         | >encourages studios to produce their own engines rather than
         | using the pre/existing selection.
         | 
         | >And then open-source it and let the creativity roam free.
         | 
         | These things are mutually exclusive.
        
         | _the_inflator wrote:
         | I disagree. It is a lot of effort to build and maintain an
         | engine. To be more precise, there is no such thing as a pure
         | engine, but a platform with tools. Hardly anyone can build
         | these things alone or even with a small team.
         | 
         | Most indie games and devs would not exist without Unity and it
         | makes perfectly sense to use services from 3rd parties. We all
         | do, we all rely on others.
         | 
         | On the other hand, a steady and trustworthy business
         | relationship is key. While I understand Unity, they wanna earn
         | money, I think it is bad to act in such a manner.
         | 
         | Regarding the "look a like" feeling: This only shows, that the
         | market works this way. How could an engine change that?
        
           | doublerabbit wrote:
           | It's more the feeling of the mechanics, game-play. Certain
           | aspects carry through regardless of the genre and how
           | modified the engine has.
           | 
           | A game to me modeled in Unreal engine feels like all others
           | created in Unreal.
        
         | ThrowawayR2 wrote:
         | Building a custom engine costs a lot of money and adds risk to
         | a project. Games already have a very high probability of not
         | breaking even and so publishers are going to be extremely
         | reluctant to take on any additional risks.
        
         | raytopia wrote:
         | I do agree that more engines would be nice especially if they
         | push workflows in different ways.
        
         | stuckinhell wrote:
         | Square enix spent millions on their in house engines (luminous
         | engine). They have a good report on how and why it wasn't a
         | great investment (10 year delays on projects). They've switched
         | to unreal for everything now.
        
           | jsnell wrote:
           | I'm not having any luck finding this. Do you happen to have a
           | link?
        
           | raytopia wrote:
           | It seems like part of the problem is they're being poorly
           | managed https://www.gamedeveloper.com/business/report-square-
           | enix-mi...
        
         | armancdev wrote:
         | I disagree. It's not an engine problem if a game look like
         | others. Most of the time, it's not lack of creativity too. It's
         | often, not taking risk and applying what is already working.
        
           | JamesBarney wrote:
           | And using a game engine lets you take those risks because you
           | can iterate and release faster.
           | 
           | Studios will take more risk on a $3m game than a $6m game.
        
             | doublerabbit wrote:
             | Rightly so, but than the $3m game feels like every other
             | $3m game. Without the risk, you don't get the whole
             | innovated design of a new game.
        
         | willio58 wrote:
         | I think it will just more people into existing engines like
         | Unreal and Godot.
        
       | filiposnz wrote:
       | >> "A fresh report...has thrown light on the situation"
       | 
       | ...no it hasn't. This was in their original announcement.
       | Discounts are available for those using other Unity
       | products/services (which includes their ad stuff).
        
         | i_am_jl wrote:
         | Describing a 100% fee waiver for studios that start a new
         | engagement with one specific service as "discounts... for those
         | using other Unity products/services" isn't exactly being
         | forthcoming.
         | 
         | This isn't my car insurance giving me a discount on my
         | homeowner's policy, this is my landlord threatening to jack up
         | my rent unless I use his garbage disposal company.
        
       | hcks wrote:
       | The outrage is on par with the Reddit API drama (if anybody
       | remember?)
       | 
       | Like wow, this company that edits this software and loose
       | millions every year is asking for a few cents on every install.
       | Outrageous! I ought to be able to make the 1000th survival horror
       | zombie game for free!
        
         | hightrix wrote:
         | > The outrage is on par with the Reddit API drama (if anybody
         | remember?)
         | 
         | You are spot on with this comment. Both Reddit's changes and
         | Unity's changes will have/have had massive effect on the
         | userbase.
         | 
         | Reddit's activity in many of the largest subreddits is down
         | 50-90% from before July 1 when the changes went into effect. I
         | imagine Unity will see similar numbers.
        
         | TheIronMark wrote:
         | Unity already has license fees if your game earns money. This
         | new license change comes across like a shameless money grab.
        
         | vore wrote:
         | A per-installation fee model is bonkers: of course Unity is
         | allowed to charge for their product, but if your margins are
         | already pretty thin, it's pretty hard to budget for a per-
         | installation fee - not even per sale!
        
           | sph wrote:
           | How do per-installation fees work in the case of piracy? Will
           | game studios have to pay for pirated installs?
           | 
           | And if a user installs a game twice, do they have to pay the
           | fee twice? Forget review bombing, now people can hate install
           | a game.
        
           | WillPostForFood wrote:
           | How many apps are successful enough to meet the revenue
           | thresholds (over $1mil), but are sub $1 ARPU, and aren't ad
           | revenue driven? I'm sure there are some, but that's going to
           | be a small number, and there likely can be some carve out for
           | them.
        
         | CDSlice wrote:
         | This isn't even close to accurate. For one thing, developers
         | already pay to license the Unity engine, it's only free if you
         | agree to keep the unity logo loading screen and make under a
         | certain amount of money.
         | 
         | Two, unlike the Reddit API changes which just annoyed mods at
         | worst (yes there were problems for people with disabilities but
         | that is such a small percentage it was basically a rounding
         | error for them) this is an existential threat to F2P mobile
         | games which are Unity's largest market by far. When you aren't
         | directly selling the game and the only way to make money is to
         | get as many downloads as possible in the hope that a certain
         | small percentage buy IAPs these few cent fees per install could
         | very easily wipe out their entire revenue.
         | 
         | Three, unlike Reddit which had no viable alternatives for the
         | millions of end users to migrate to, Unity has far fewer
         | customers and an extremely viable replacement in the form of
         | Unreal and potentially Godot.
        
         | password54321 wrote:
         | As usual, a lot of it isn't even genuine outrage but people who
         | just want to see a giant fall. I will even admit, as someone
         | who didn't like Unity anyway I find this quite amusing.
        
       | Renaud wrote:
       | Wondering if Microsoft shouldn't have bought Unity, It could have
       | made sense, because of its focus on developer, because of its
       | interests in gaming and because it's a huge showcase for C# and
       | .Net as many of the features of unity could have been folded into
       | regular .Net or there could have been an opportunity to have a
       | '.GameNet' version, maybe.
        
         | sitzkrieg wrote:
         | on the flip side they kinda left XNA out to dry despite
         | basically being the unity before unity in some ways for indie
         | devs
        
           | everyone wrote:
           | Yeah I made games in XNA, then Unity (for 10 years), now
           | Godot since yesterday.
        
           | cableshaft wrote:
           | Monogame came in to fill in the XNA gap to a certain extent.
           | Works pretty well as long as you're making 2D games. I'm
           | trying to make a 3D game in it right now, and it's... _okay_
           | , not great.
        
         | cratermoon wrote:
         | Microsoft already has XBox, and CryEngine is also C#/.NET.
        
           | bmalicoat wrote:
           | Xbox doesn't provide a game engine, just lower level APIs.
           | Unity is a popular way to get games on Xbox for folks who
           | can't build their own engine. Further, things like HoloLens
           | run Unity as a first class dev environment.
           | 
           | I used to work on both Xbox and HoloLens at Microsoft, but
           | this is all public info.
        
         | asabla wrote:
         | I guess this could also be a play to make Microsoft interested
         | in buying them out when money crisis hit.
         | 
         | But I don't know, it could just be an ordinary bad bussiness
         | decision
        
           | Someone wrote:
           | > I guess this could also be a play to make Microsoft
           | interested in buying them out when money crisis hit.
           | 
           | That would be a stupid idea. Companies that are in financial
           | trouble tend to be cheaper to buy, typically a lot cheaper if
           | there's only one serious buyer candidate.
           | 
           | If they think "when we're almost broke, we can sell out to
           | Microsoft for X million", certainly they can get at least the
           | same amount now that they aren't?
        
         | pc_edwin wrote:
         | They really want to but Lina Khan will blow up the acquisition
         | before the ink even has a chance to dry.
         | 
         | Especially after the bruising FTC for from the Activision
         | fight. Unlike Activision, the FTC actually has a case here.
        
       | salynchnew wrote:
       | When the anonymous source in the article said "they've been
       | killing it," then I knew that the quote came from a source
       | internal to AppLovin. Their exec team loves to say stuff like
       | that.
        
       | brundolf wrote:
       | You can almost hear the lawsuits being prepared
        
       | olliej wrote:
       | "Make your apps have a shitty UX, and sell your user's data
       | without their consent, or we'll force you to discard all the work
       | you did under our previous license"
       | 
       | In other words, any unity products going forward should be
       | considered suspect. Any new games should avoid the entire company
       | as they are clearly dishonest and have no interest in maintaining
       | whatever contract terms you might agree to today.
        
       | Fordec wrote:
       | What a lovely way of saying that everyone who _doesn 't_ leave
       | the platform is about to become a Ubisoft tier Developer filled
       | with spyware. Burning even their users that don't quit the
       | platform. How absolute this decimation of their user base will be
       | is almost impressive in how destructive this move has been. I
       | almost have to commend it's comprehensiveness.
        
       | failrate wrote:
       | Godot is pretty good. GameMaker Studio is all right for 2D stuff.
        
       | Havoc wrote:
       | At this stage Unity could offer a free unicorn and it wouldn't
       | move the needle.
       | 
       | They literally smoked all their goodwill in a day with their
       | retrospective revise the terms to something that fucks over ever
       | dev thing
        
       | Robotbeat wrote:
       | I feel like there ought to be a really good open source game
       | engine competing with Unity and Unreal, but I'm unfamiliar with
       | any.
        
         | malermeister wrote:
         | Sounds like you were waiting for Godot.
        
         | gabereiser wrote:
         | There's quite a few. The biggest one right now is Godot.
         | There's still MonoGame, Open3D, Unreal, and others. Unity has
         | one thing these others don't (outside of Unreal) and that's a
         | healthy asset store. Solo indie devs aren't necessarily the
         | best artists. We know the math, but lack the eye.
        
           | everyone wrote:
           | Its fairly trivial to buy art assets from the Unity asset
           | store and port them to Godot, there are tools to do it
           | automatically. They are just meshes and textures after all.
        
           | hutzlibu wrote:
           | "We know the math, but lack the eye."
           | 
           | I do have the eye, but lack the skills in my hand. I can do
           | shiny art, but am so slow compared to an skilled artist. So
           | why should I do their jobs?
           | 
           | Blender has also an asset store btw, but not really
           | comparible (yet). But the blender foundation would be a
           | player I would trust to invest in them. I always stayed away
           | from unity and it seems my gut feeling was right.
        
           | raytopia wrote:
           | When of the others is Panda3D. It's not on a lot of people's
           | radars but you can use it with Python and C++. It's pretty
           | code oriented which might not be everyone's cup of tea but I
           | enjoy working with it.
        
           | meheleventyone wrote:
           | There's quite a few art asset marketplaces though. You'll
           | find most art is sold across all of them as well as it's
           | obviously easy to do. The move by Roblox to make their
           | creator store denominated in dollars is likely a move to
           | reduce the friction to attract these sellers there as well.
        
           | bogwog wrote:
           | The Unity asset store isn't limited to Unity (yet...). If
           | you're ising Unreal or Godot or whatever, there's no reason
           | you can't use assets from the Unity store. (With the
           | exception of code assets of course)
        
         | TillE wrote:
         | Godot is already a great, viable option for many games, and
         | it's only getting better with each point release. Official
         | (paid) console ports are coming in the near future. An asset
         | store is coming, probably next year.
         | 
         | It's not a drop-in replacement for Unity, but nothing is.
        
           | rocky1138 wrote:
           | What's OpenXR support like in Godot?
        
             | lsaferite wrote:
             | I have no clue, but I was reading the documentation
             | yesterday and XR is in there: https://docs.godotengine.org/
             | en/stable/tutorials/xr/index.ht...
        
         | gustavus wrote:
         | Godot and yes although it isn't at parity at this point as more
         | people adopt it it will increase in the number of features,
         | especially if people choose to support it monetarily.
        
         | lux wrote:
         | Godot Engine is coming along nicely https://godotengine.org/
        
       | jarsin wrote:
       | Switch over to Unreal. There is no risk over there.
       | 
       | Tim Sweeney (Dec 2022): Epic Games will 'fight on to victory,
       | whatever it costs' in Apple legal battle
       | 
       | Psst...that cost will be Unreal.
        
       | jarsin wrote:
       | [flagged]
        
         | [deleted]
        
       | cratermoon wrote:
       | Buried lede: AppLovin tried to buy Unity last year:
       | https://www.wsj.com/articles/applovin-proposes-combination-w...
       | LevelPlay is Unity's rebrand of IronSource's mobile game
       | monetization platform. IronSource bought/merged with Unity about
       | the same time, a move criticized by some:
       | https://www.thegamer.com/unity-criticised-for-merging-with-k...
        
       | Ekaros wrote:
       | Hmm, I wonder if they get the 0.20 cents per install from adds?
       | Then again it would be extremely ironic if they would charge more
       | for install than they can provide revenue via adds...
        
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       (page generated 2023-09-14 23:00 UTC)