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Unity reveals plans to charge developers per game install - plans modified and CEO fired, lol

Zed Duke of Banville

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Does anybody really believe Disney will go down? They might slim down a bit to appease investors, but I doubt they are going anywhere
There are rumors that the CEO's plan is to have Disney acquired by another company after shedding many of Disney's components, leaving just the core (albeit still quite large) business as a subsidiary of that purchaser, though there doesn't seem be any substantiation of these claims.

Even if Disney was run completely into the ground, its components would be sold off to other companies, and the name would survive for decades.
 

Grauken

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That process could take a decade if not more, though its a realistic option
 

negator2vc

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By the time that process is complete all their IP will be worthless!
Even now their main IPs are more or less dead (especially in movies & tvseries) which is quite an accomplishment!
 

Caim

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Still looking forward to George Lucas buying back Star Wars for half the amount he got for it, then releasing a press video of him just sitting smugly in front of a camera for several minutes without saying anything.
 

Hag

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Still looking forward to George Lucas buying back Star Wars for half the amount he got for it, then releasing a press video of him just sitting smugly in front of a camera for several minutes without saying anything.
Why on earth would someone look at George Lucas face for several minutes ?

Actually nevermind, it would still be better than Disney's Star Wars.
 

Infinitron

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The inside scoop: https://mobilegamer.biz/fuck-you-were-not-paying-inside-unitys-runtime-fee-fiasco/

“Fuck you, we’re not paying”: inside Unity’s Runtime Fee fiasco​


Sources from inside Unity and across the mobile games business and have told us:
  • September’s Runtime Fee policy was “rushed out” and driven by Unity and IronSource’s intense battle with Applovin over the mediation business
  • The firm’s long-term profitability problem and tumbling share price were also a factor
  • Unity/IronSource has been offering some partners money to switch their UA and admon from Applovin
  • There was resistance to the Runtime Fee idea within Unity, but those concerns were ignored; it was announced before many staff knew anything about it
  • In the second version of the policy Unity had planned to go with a 4% revenue share, but the reaction to the first announcement was so fierce it got knocked down to 2.5%
  • The new policies effectively never really applied to larger partners anyway – most will be able negotiate their own rates through their account manager
One Unity insider told us that a major mobile game publisher – and one of Unity’s biggest clients – met with John Riccitiello himself days after the first Runtime Fee policy was announced. They told him, in the words of our source: “Fuck you, we’re not paying.”

Multiple sources told us that in the week of panic that followed the first announcement, Unity planned to announce a 4% revenue share for games that earned over $1m, slightly undercutting Unreal Engine’s 5%. But the response was so fierce it was knocked down to 2.5% in the tweaked policy announced a week and a half later.

Unity-runtime-fees.jpg
Where it all started: ‘Unity’s unreal pay-per-install plan leaves mobile devs stunned – and potentially out of business‘.

Before the original Runtime Fee announcement was made, a very large group of senior Unity managers met to discuss the proposed changes, we’re told.

“Half of the people in that meeting said that this model is too complicated, it’s not going to be well received and we should talk to people before we do this,” said one source. “We were told Unity had spoken to people – but they didn’t tell us who. They obviously did have conversations with people, but not enough.”

“It felt very rushed,” they continued. “We had this meeting and were told it was happening, but we were not told a date. And then before we knew it, it was out there.”

unity-logo-black.jpg
Shots fired in the mediation war: ‘Unity is offering a Runtime Fee waiver if you switch to LevelPlay as it tries to “kill AppLovin”‘.

As we reported previously, Unity account managers had been quietly offering waivers on the proposed per-install charges if developers started using Unity’s LevelPlay ad platform. It was, as one developer put it, an attempt to “Kill Applovin”.

“What you picked up on was very accurate,” says another source. “Applovin is dominating and Unity tried to use this policy as a forcing agent to try and get back some market share.”

“It was IronSource and Unity’s play to increase their mediation business, effectively, and developers have been caught in the crossfire of this mediation war that’s been going on for a couple of years.”

unity-boycott.jpg
Developers react: ‘Unity boycott begins as devs switch off ads to force a Runtime Fee reversal‘.

Another large mobile publisher told us that their IronSource contact had been teasing – or threatening – a move like this since late last year. They said that around twelve months ago, just after Unity and IronSource completed their merger, they were “offered a significant amount of money” to switch their UA and admon spend from Applovin’s Max product to IronSource.

“The offer was very, very attractive,” they said. “But we refused. Then I had a meeting with a very high level person from IronSource who told me, basically, that was the last time you could have got that money. He said you will have to switch to IronSource in the future.”

“He was saying that they will just clear Applovin out from the market,” our source continued. “But I didn’t think they would be doing anything with the engine. I thought they were developing some new technology or using the Unity engine to collect more data.”

unity-grey.jpg
Runtime Fee 2.0: ‘Unity says sorry – again – and reveals its revised pricing plan‘.

Our sources also noted that management-level naivety and Unity’s declining share price were also factors in the policy being rushed out. Unity stock got close to $200 in November 2021; before the first Runtime Fee announcement it was trading at around $36, and at the time of writing it is just over $26.

“I truly don’t think it was done maliciously,” our Unity insider said. “Ultimately Unity has lost a lot of money over the last 18 years – billions of dollars – and they need to do something to make more money. Sadly, it wasn’t delivered well, but the need to make more money is still there.”

The Unity staffer added that after the events of the last six weeks, many within the company have been busily applying for jobs elsewhere in the games business.

John-Riccitiello-Unity.jpg
Fall guy: ‘John Riccitiello leaves Unity after price policy fiasco‘.

The furore around Unity seems to have calmed a little now that the policies have been tweaked and CEO Riccitiello has quit. But there’s another detail in the saga that’ll enrage mid-sized and small developers: our insider told us that all of the new pricing policies can be negotiated down, but it’s only Unity’s larger partners that are in a position to do so.

“Anyone in a bigger developer’s business team or the sales team is able to reduce the fees,” says our source. “It’s a negotiation. Some of the bigger clients will never pay that money because they’ll just go back to Unity, agree on a number or do something around the [LevelPlay] mediation to get away with it.”

“That’s what all of the big boys are going to do,” they added. “A lot of the outcry from indie devs was kind of misplaced really. None of them are going to get anywhere near the $1m anyway.”
 

Wirdschowerdn

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Unity makes further job cuts as it ends agreement with Weta FX


As part of company "reset".

Unity is making further cuts to its workforce as it ends an agreement with Weta FX.

The company will eliminate 265 jobs, or 3.8 percent of its global workforce, as part of a company "reset", Reuters reports.

Unity acquired part of Weta FX, the digital effects company founded by Lords of the Rings director Peter Jackson, in 2021 for $1.6bn.

Now, Unity has terminated the professional services part of the agreement, resulting in 265 employees being laid off.

In addition, Unity will shut down offices in 14 locations including Singapore and Berlin and significantly reduce its office footprint in its remaining offices such as San Francisco and Bellevue, Washington.

Jim Whitehurst, interim CEO and president of Unity, said more changes would be on the way to "refocus" the business. "While no additions have been finalised, it's clear that we will reduce the number of things we are doing overall," he told Reuters.

Weta FX confirmed the move in a statement via FX Guide.

"Weta FX will be extending offers to as many of the team as possible as it looks to expand its research, development and support functions," a spokesperson said.

"Unity will retain ownership of the technology it acquired from Weta in December 2021 and will be evaluating the best way to enhance its offerings with it over time. The technology will also remain fully available to Weta FX. Weta FX will continue to build and extend the IP, and develop its own tools and techniques, to continue its evolution as a leader in visual effects."


Earlier this month, Unity announced that more layoffs would be "likely" as it assesses its product portfolio to focus on those products that are most valuable to our customers".

It's been a disastrous year for Unity, following the introduction of its controversial Runtime Fee which received a major backlash from developers. CEO John Riccitiello retired from the company after the announcement.

Approximately 8 percent of the Unity workforce were laid off in May - the third round of layoffs in 10 months at the time of writing.

TimSweeney-squatting-over-Unity-Grave.jpg
 
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Still looking forward to George Lucas buying back Star Wars for half the amount he got for it, then releasing a press video of him just sitting smugly in front of a camera for several minutes without saying anything.
Why on earth would someone look at George Lucas face for several minutes ?

Actually nevermind, it would still be better than Disney's Star Wars.
Lucas was still kinda based, tbh. People shit on him for his constant remaking of the movies but hey, they were his films. And he did provide source materials for people who would like to try their hand in editing them as they saw fit, iirc he had some sort of contest where he'd let you do just that.
 

DarkUnderlord

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They don't need any help.
True,
but the faster they go down, the better are the chances of any remaining franchises they have to stay un-raped ;-)
Does anybody really believe Disney will go down? They might slim down a bit to appease investors, but I doubt they are going anywhere
Yes. Bankruptcy is a bitch and they have a serious cash problem. None of their movies are making money - and they've got shit in the pipelines that's not going to make money for years.

Their theme parks have always been their cash cow but that cow relies on franchises and brand recognition. Who wants to go to Disney land with their little girls to see men wearing princess dresses? No-one wants to ride the Woke Express Rollercoaster, which means their entire brand is trashed.

It'll take years and Billions of dollars to turn it around.
 

Sarathiour

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Who wants to go to Disney land with their little girls
I'm not sure that family with two or more children's are the targeted audience anymore. I had to commute quite a few times in the past months by the Disneyland Paris train station, and they aren't that many kids. Granted, the time at which I commute might play a part in this, but it's not excessively late either.
 

Grauken

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They don't need any help.
True,
but the faster they go down, the better are the chances of any remaining franchises they have to stay un-raped ;-)
Does anybody really believe Disney will go down? They might slim down a bit to appease investors, but I doubt they are going anywhere
Yes. Bankruptcy is a bitch and they have a serious cash problem. None of their movies are making money - and they've got shit in the pipelines that's not going to make money for years.

Their theme parks have always been their cash cow but that cow relies on franchises and brand recognition. Who wants to go to Disney land with their little girls to see men wearing princess dresses? No-one wants to ride the Woke Express Rollercoaster, which means their entire brand is trashed.

It'll take years and Billions of dollars to turn it around.
Based on their recent quarterly presentations they are doing fine. Cash flow from operations is up, their park business is growing. Seems like lots of park-goers don't care whether Disney is woke or not
 

negator2vc

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Yes. Bankruptcy is a bitch and they have a serious cash problem. None of their movies are making money - and they've got shit in the pipelines that's not going to make money for years.

Their theme parks have always been their cash cow but that cow relies on franchises and brand recognition. Who wants to go to Disney land with their little girls to see men wearing princess dresses? No-one wants to ride the Woke Express Rollercoaster, which means their entire brand is trashed.

It'll take years and Billions of dollars to turn it around.
Judging by the latest Disney SEC report is quite obvious the company is beyond saving.
Beside even if they turn it arround as you say, the damage will be (and is) so big that pretty much every IP they own is ruined.
The only hope is moves like the ones made by other studios (for ex. like Daily Wire) to produce actual entertaining content outside the influence of companies like Disney attractιng the former Disney's customers.
 

Caim

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Who wants to go to Disney land with their little girls
I'm not sure that family with two or more children's are the targeted audience anymore. I had to commute quite a few times in the past months by the Disneyland Paris train station, and they aren't that many kids. Granted, the time at which I commute might play a part in this, but it's not excessively late either.
These are the Disney Adults, unmarried young people who go to didney worl by themselves or with their partner, and the two will never have kids because either they don't want to because TRUSTED SOURCES(TM) told them this kills the planet, or they don't want to because why give up their hedonistic lives? So with good income and no kids they can afford to splurge several thousand dollars to relive their childhood and do stuff their parents could not afford due to their sensible spending habits.
 

negator2vc

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Judging by the latest Disney SEC report
the company is doing fine
I wasn't talking about money problems but the fact that they practically admitted in the report that they don't give a shit about customers just 'THE MESSAGE'

I don't give a shit about Disney anymore, they can all go jump in an active volcano for all I care. I only care about someone making quality entertainment.

For ex. in games I stopped giving a shit about AAA games a long time ago and I am only interested in good indie games that care about their customers.
 

negator2vc

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As long as they maintain some level of income they can drag off bankruptcy for ages, had a bad experience with a company that was in that spot.
It's quite obvious that these companies are funded these days not by their products but from some other income. Probably from some activist investors that care more about the propaganda than profit (which is normally the primary directive of any company).
 

Grauken

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