Exactly one year after sparking controversy with its runtime fee pricing model, Unity has officially canceled the program. Unity CEO Matt Bromberg announced the decision in a blog post, stating, “After extensive consultation with our games community and customers, we’ve decided to cancel the Runtime Fee.” The company is now reverting to a per-seat subscription model, marking a significant shift in its approach.

The Controversy Over Unity’s Runtime Fee

Last year, Unity shocked the game development world by unveiling a new pricing structure that would charge developers based on the number of game downloads, rather than a predictable monthly rate. This meant that developers would face fluctuating fees tied directly to how often their games were downloaded, which could lead to significantly higher costs. The unpredictability of this model created widespread anxiety among developers, many of whom feared they could be blindsided by unexpected payouts to Unity.

The backlash was swift and intense. Developers took to social media to express frustration, arguing that the new pricing model was introduced without proper warning or time to adjust. They pointed out that the per-download fee was impossible to budget for, and some even warned that the system could be abused by bad actors deliberately inflating download numbers to punish developers.

Developer Boycotts and Unity’s Response

In response to the outcry, several developers vowed to move away from Unity in favor of alternative game engines like GameMaker and Godot. A collective of mobile developers also protested by turning off ad monetization, effectively freezing ad revenue payouts to Unity.

To calm the situation, Unity made several amendments to the pricing structure. The company raised the threshold for when the per-download fee would be applied, setting it at $1 million in revenue across all product tiers. Unity also introduced a payment choice, allowing developers to opt for either a flat 2.5 percent revenue share or the original per-download pricing scheme. Additionally, Marc Whitten, Unity Create’s president at the time, issued a public apology for how the pricing model had been rolled out.

Despite these efforts, the damage had been done. Unity’s CEO, John Riccitiello, stepped down just one month after the pricing announcement, and Whitten left the company earlier this year.

Return to the Subscription Model with Higher Prices

With the cancellation of the runtime fee, Unity will return to a per-seat subscription model. However, starting January 1, 2025, the pricing for Unity Pro and Unity Enterprise tiers will increase. While the company hopes this move will restore trust with developers, the higher subscription costs may still raise concerns for those already shaken by the events of the past year.

Unity’s decision to cancel the runtime fee represents a major course correction, but it remains to be seen how the development community will react to the new subscription pricing model.