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Comment by umpalumpaaa

2 years ago

The problem is that they did it retroactively and they also added a per install/download fee. So if your game has 1mio installs you pad the install fee x 1 Million. Unreal has no install fee like this.

“A 5% royalty is due only if you are distributing an off-the-shelf product that incorporates Unreal Engine code (such as a game). Provided that you notify us on time using the Release Form, you will only owe royalties once the lifetime gross revenue from that product exceeds $1 million USD; in other words, the first $1 million will be royalty-exempt.”

Some mobile games have a ton of installs and a very small amount of revenue per user. Those 27cents per install are a lot of money for those type of games and will even make some business models no longer feasible.

> Those 27cents per install are a lot of money for those type of games and will even make some business models no longer feasible.

Exactly. So if they did this in an upfront way, they would have said that starting with Unity 2024 there is this new cost structure. Then game devs can make informed choices if they want to build those types of games on the platform.

This retroactive stuff is insane and I cannot figure out how a company can make that type of move if they care about their users. Although I think I sort of answered my own question...

  • > This retroactive stuff is insane and I cannot figure out how a company can make that type of move if they care about their users.

    I can't even understand how it can possibly be legal. How on earth is it even possible to say "your game which was released before we updated this license is subject to the updated version"? IANAL but that sure seems like something which would require both parties to agree to the updated terms for them to be binding.

    • The old Terms of Service have the usual clause that says that the company can change the terms at any time. However, the terms do provide that if you don't update Unity then you can continue to use the old terms. Unity obviously doesn't point that out in the blog or FAQ.

      > Unity may update these Unity Software Additional Terms at any time for any reason and without notice (the “Updated Terms”) and those Updated Terms will apply to the most recent current-year version of the Unity Software, provided that, if the Updated Terms adversely impact your rights, you may elect to continue to use any current-year versions of the Unity Software (e.g., 2018.x and 2018.y and any Long Term Supported (LTS) versions for that current-year release) according to the terms that applied just prior to the Updated Terms (the “Prior Terms”). The Updated Terms will then not apply to your use of those current-year versions unless and until you update to a subsequent year version of the Unity Software (e.g. from 2019.4 to 2020.1). If material modifications are made to these Terms, Unity will endeavor to notify you of the modification. If a modification is required to comply with applicable law, the modification will apply notwithstanding this section. Except as explicitly set forth in this paragraph, your use of any new version or release of the Unity Software will be subject to the Updated Terms applicable to that release or version. You understand that it is your responsibility to maintain complete records establishing your entitlement to Prior Terms.

      https://web.archive.org/web/20220716084623/https://github.co...

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    • Well, it depends on how you think of the license. Is it like you buy a license for a specific release or do you subscribe to a license to the software across all releases?

      I don’t know. I can see how it would be ridiculous if Amazon said “oh, by the way, starting next year you have to pay a cent every time you finish any of the books you bought on your kindle”

      But if Netflix went “starting next year, there’s a surcharge of 1 cent per episode you watch” nobody would go “surely it can only count for episodes released from next year!

      Which raises an interesting question to me: what if a developer wants out of the Unity contract? Does that mean they have to somehow break games consumers already purchased so as not to be liable to install fees?

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    • waves in the general direction of the housing market, politicians being "lobbied" (bought) by companies, rampant destruction of the environment by industry; but paper straws for us, the numerous tax havens and the lack of any reform from Panama papers, government "contractors" padding their purses with tax money (see projects like crossrail), privately owned utilities completely mismanaged and corrupt (see Thameswater)

      We live in a dystopia lmao. Of course stuff like this is possible. Unity took one leap forward and pissed everyone off, they'll "fix" it by taking one or two steps back and then everyone will forget about it, just like we forget about everything else.

    • Maybe their argument was going to be the malicious interpretation that continued use of the engine represents consent to the updated terms. Thus maliciously expecting that anyone who doesn't agree should cease distribution and support of their game.

  • >This retroactive stuff is insane and I cannot figure out how a company can make that type of move if they care about their users.

    If I understand you correctly (I haven't really been following this), they changed the contract and are trying to retroactively collect license fees for installs done prior to the change in contract? I don't think this is legal. When you change a contract, it's on a go forward bases. It will be interesting to see how this plays out. It's definitely a money grab. If it's deemed illegal, i.e. fraud, I hope there is jail time. Gotta send a message.

    Did Unity recently get acquired, new investors or new management?

    • Unity IPO'ed in 2020, which isn't super recent, but is probably the reason behind these changes. IPO'ed means they gotta report some quarterly improvements, every quarter forever under the totally unsustainable growth model.

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    • It's not fraud. They are not misrepresenting anything, or getting any money that doesn't belong to them.

      If it's illegal, it will just be invalid. What means that people could just not pay them. There's no jail time coming out of this.

    • > Did Unity recently get acquired, new investors or new management?

      Nope. They bought Weta tools and the investment haven't paid out and probably won't be soon if ever, now they are desperate for money.

    • The terms have been changed so that all future installs can incur a fee even on older games that used unity even if the haven't been updated recently.

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    • I have only been generally following this but I don’t think this is quite accurate.

      It seems more like, starting in 2024 when you get more downloads the fee would be applied.

      I see people talking here about apps that have a huge user base and a very low price per purchase. I admit that segment didn’t pop into my mind initially. And I see the problem there. I also imagine the Unity execs may have missed that scenario too.

      From reading all of their public communication, and with just a hint of principle of charity, I suspect they are trying to do this in the most fair minded and developer friendly manner possible.

      You have to meet both volume and revenue minimums to even be subject to this. All free apps are safe. All non-profits are safe.

      I think it is good Unity is receiving public feedback.

      I am sad so many people are jumping to the conclusion this is a corrupt money grab.

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  • They don't want developers choosing to target older Unity versions for their games, they want to milk cent they can out of their users.

    • That and/or they wanted to set up existing games. Something like 1 in 5 of top 50 iOS games, free-to-play and majority Asian(Chinese or Japanese), are making banks and on Unity.

      Personally I’m wondering if Chinese gamedev industry would “buy Godot” or do something to that effect. Japanese publishers won’t be able to do that nor would be willing to pay, so I’m guessing they’ll migrate existing to UE or wind down Unity titles, just my speculations though.

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    • Then just specify that new greenfield projects created after [date] won’t be licensed for previous versions of the engine, and that anyone with a project currently in development has until [date] to register their existing use.

> Some mobile games have a ton of installs and a very small amount of revenue per user. Those 27cents per install are a lot of money for those type of games and will even make some business models no longer feasible.

When you put it that way, Unity could have come out of this price change looking like heroes with better messaging.

Serious games pay the $0.27 fee moving forward, and (hopefully) that comes with some new value add for end users (such as contractually enforced no advertising, cross-platform something something).

Ad-supported games use a different engine with different rules, and end users get the “free to play” benefit.

(The retroactive thing is obviously bullshit; I wonder how many studios will simply refuse to pay and jump ship for future titles.)

  • They have actually released something like this in the last day that says if you use their ad market there is no per device fee.

    It was on HN this morning.

  • > $0.27

    The highest possible fee seems to the $0.20 (only if 100% of your users are in the US and a few other rich countries). Also it only seems to the there to encourage everyone on Personal/Plus to upgrade to Pro (before these changes you were already required to do that if you company revenue was above $200).

    Realistically it's going to be closer to $0.02-0.05 per install.

If you pay $2k for unit pro it’s a max of 15 cents an install, actually less. And you pay nothing for installs until $1m in revenue and 1m installs in the previous 12 months

  • That’s $2k, per seat, per year.

    Which you now need to pay to get rid of the Unity splash screen. Why they haven’t learned the lesson of only poor developers (and therefore, largely shovelware and bad games) showing their splash screen is a really bad idea I’ll never understand. I suppose this will technically help with that.

> 27cents

Realistically it’s closer to 3-5 cents per install. Where did you get 27? Even personal/plus is cheaper than that in the worst case (ie. 100% of your users are in NA, the richer parts of Western Europe etc)