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Navigating the Turbulent Waters of Game Development Pricing Changes
Unity, a leading US-based game software company known for its integral role in creating popular games such as “Pokemon GO” and “Genshin Impact,” has announced the departure of its CEO, John Riccitiello. Mr. Riccitiello will also relinquish his position as chairman and exit the company’s board. The decision comes in the wake of significant criticism and controversy surrounding a pricing change initiated by Unity.
Unity’s CEO for nearly a decade, John Riccitiello expressed his gratitude for the opportunity to lead the company, stating, “It’s been a privilege to lead Unity for nearly a decade and serve our employees, customers, developers, and partners, all of whom have been instrumental to the company’s growth.”
The contentious pricing change, which involved the imposition of a fee of 20 cents for each installation of a Unity-backed game on any device, elicited strong reactions from the gaming developer community. The outcry reached such a level that Unity was compelled to evacuate its offices at one point due to reported threats.
However, after facing a vigorous and sometimes profanity-laden backlash from studios and developers, Unity decided to amend some of the changes to its pricing policy.
Unity CEO John Riccitiello steps down, effective immediately.https://t.co/FyHdgImMN4
— PC Gamer (@pcgamer) October 9, 2023
Unity has stated that its technology forms the foundation for 70 percent of the top 1,000 mobile games, with apps created using its software being downloaded four billion times per month.
James Whitehurst, a veteran of the tech industry and former CEO of Red Hat, will temporarily assume the role of CEO at Unity during the search for the next chief executive. Roelof Botha, the lead independent director of Unity’s Board, will take on the position of Chairman.
Unity has confirmed that it will initiate a search for a permanent CEO, with John Riccitiello continuing to provide guidance to ensure a smooth transition.
Unity went public in 2020, achieving a valuation of $17 billion on its first day of trading. However, the company’s market capitalization currently stands at just over $11 billion, following a decline in its stock price in tandem with a broader downturn in the tech sector in 2022.
“We are listening, talking to our team members, community, customers, and partners, and will be making changes to the policy,” Unity stated after acknowledging the discontent and confusion that its pricing change had caused among developers.
Unity shares closed at $29.70, marking a 1.5% decrease at the end of the trading day on Monday.
