Note: Unity recently changed the new pricing model after a strong response from the community. See their latest changes or open letter to the community. Below given article is about the pricing model that got massive backlash from the game dev community.

Unity, a renowned game development platform, recently introduced its new pricing model, which has sparked extensive discussions and concerns within the game development community. This decision is among the most controversial that Unity has made and has raised questions about the future of this esteemed game engine. Fortunately, recent developments indicate that Unity is reevaluating its approach. Although the community does not seem happy at all.

We have heard you. We apologize for the confusion and angst the runtime fee policy we announced on Tuesday caused. We are listening, talking to our team members, community, customers, and partners, and will be making changes to the policy. We will share an update in a couple of…
— Unity (@unity) September 17, 2023

The pricing changes, particularly in how Unity Runtime fees are calculated, have prompted concerns about transparency, trust, and their potential impact on developers. In this blog post, we will delve into Unity's new pricing model, explore its implications, and present four crucial questions (excluding the trust issue which is the parent issue of the current controversy that I will explain shortly) that developers should consider, or Unity should address to the community.

Before delving into the current pricing model, it's important to address a significant trust issue: Unity's removal of the Terms of Service (TOS) change tracking facility from GitHub. This repository was invaluable for tracking Unity TOS changes and, more importantly, included a clause allowing developers to use older versions of Unity's TOS for their games or products. This leads us to the concept of the retroactive effect, which will be explained shortly. The removal of this tracking repository raises questions about Unity's commitment to transparency and trust. They started proudly in 2019 and now silently removed the old TOS. This raises the fundamental issue of trust? Now tell me unity how I will trust you?

unity 2019 Blog's excerpt clearly mentioned that you can stick with the old version which means old TOS but now all have gone!

Why the New Pricing Model is Dubious?

Unity's new pricing model introduces a substantial shift in how developers are billed for using the platform. Central to this model is the Unity Runtime Fee, determined by the number of installations a game receives, in addition to the revenue threshold outlined on the official website. While this approach aims to capture revenue as games gain popularity, it has raised concerns about fairness and transparency. Questions arise about how installations are accurately tracked and why each installation is charged, even if a game is installed on different devices. Additionally, concerns about fraudulent or pirated software installations warrant attention.

We leverage our own proprietary data model, so you can appreciate that we won’t go into a lot of detail, but we believe it gives an accurate determination of the number of times the runtime is distributed for a given project.
— Unity (@unity) September 12, 2023

Unity believes that they have an accurate measurement block box. Remember the wording unity said "We believe"

Not only Developers but everyone value transparency and predictability in pricing, and the core concern revolves around trust. Developers want a clear understanding of how these metrics are calculated and whether room exists for manipulation or errors.

Hey Garry! 👋
A lot of questions here and we’ll do our best to get each answered but first, we want to say we have heard the concern from the indie community loud and clear and are working to clear up confusion:
- On an annual basis, we evaluate and adjust pricing across our…
— Unity (@unity) September 13, 2023

The Retroactive Effect - Disrupting Carefully Made Plans

Another pressing issue is the apparent retroactive nature of the pricing changes. Developers who had previously agreed to different Terms of Service (ToS) with Unity may now find themselves subject to new terms. Game development is a lengthy process, and sudden rule changes can disrupt ongoing projects. This prompts the question: should developers be held to agreements they made under different conditions?

Discouraging Smaller Developers from Achieving Certain Thresholds

Unity's new model introduces high revenue and installation thresholds, which could deter smaller indie developers. These thresholds may create affordability challenges for them or influence their game development strategies to avoid crossing these thresholds. The concern is whether this pricing model might stifle creativity and innovation in the indie game development scene.

Community Backlash

We want to acknowledge the confusion and frustration we heard after we announced our new runtime fee policy. We’d like to clarify some of your top questions and concerns:

Who is impacted by this price increase: The price increase is very targeted. In fact, more than 90% of our…
— Unity (@unity) September 13, 2023

Despite suggestions that only a small percentage of users will be affected (with corrections ranging from 1% to 10%), Unity's new pricing model has faced significant backlash from the developer community. This raises questions about the reasons behind such a strong negative reaction. Are there nuances or hidden complexities that require attention?

One of indie dev or consultant explains community backlash. Source tweet: Tweet: https://x.com/tha_rami/status/1703676195152269773?t=ZqIxYuQqtzL7oC795F7ArQ&s=09

Unity's new pricing model signifies a significant shift in how developers are billed for using the platform but in a very ambiguous way. It raises critical questions about transparency, trust, and fairness. Developers rightly express concerns about the retroactive nature of the changes and their impact on smaller studios. Unity's response to these concerns and its ability to maintain trust within its community will significantly influence the platform's future. Developers should carefully consider these questions as they navigate the changes in Unity's pricing model and assess its alignment with their goals and projects.

Conclusively I can say that the damage has been done, and the trust has been shaken which is more important than the per-install illogical pricing model.