Cost and Legal Features of Unity

Recently, significant changes have occurred in the model of interaction between developers and the popular Unity platform. Particularly relevant has been the introduction of new terms of use, which sparked widespread dissatisfaction in the gaming industry. This article will explore the current conditions for working with Unity, the specifics of its pricing plans, the legal aspects of interaction, and the recent scandal related to the attempt to introduce a fee for game installations.

The Unity Student plan is available for free to students who can verify their status through an academic institution. It includes the latest version of the Unity editor, allowing students to work with cutting-edge development tools. Students also gain access to various assets and tools they can use in their projects, enhancing the quality and speed of learning. Cumulative discounts in the Unity Asset Store provide opportunities to economically expand resources for project creation.

Unity Education Grant is aimed at educational institutions looking to integrate the Unity platform into their curriculum. This plan facilitates access to educational licenses and offers discounts on products, making it particularly valuable for setting up multi-seat classroom labs. Such labs enable students to collaborate on projects, fostering teamwork skills and understanding of complex 3D development aspects.

Unity Educator is designed for teachers, who can access training resources for free. This plan includes educational materials and projects that help instructors effectively integrate Unity into their courses. A key feature is the provision of tools for creating accelerated project development, making it easier to demonstrate and apply educational materials in the classroom.

Unity Personal is a free option designed for beginner developers just entering the world of 3D project creation. This plan provides access to the latest version of the Unity editor, enabling users to utilize modern tools to bring their ideas to life without financial investment. This approach opens doors for experimentation and learning, making the platform accessible to a wide range of individuals interested in game and interactive application development.

In addition to core functionality, Unity Personal includes a variety of educational resources and learning materials designed to ease the process of mastering the platform. These resources cover a wide range of topics, from 3D modeling basics to complex programming aspects, allowing users to gradually build their skills and confidence in working with Unity tools.

The Unity Pro and Unity Enterprise plans are designed for professional developers and large enterprises that require more powerful tools and enhanced support for large-scale projects. Unity Pro starts at $185 per month, offering users advanced features for developing and publishing projects across multiple platforms. This plan also includes priority customer support, which is critical for maintaining workflow continuity and resolving potential issues promptly.

Unity Enterprise, starting at $450 per month, is tailored for large corporations requiring a comprehensive approach to project development and support. This plan provides access to advanced tools for creating high-quality interactive applications and games, including support for augmented and virtual reality applications. Services range from technical support to professional training resources, enabling enterprises to accelerate development and improve product quality.

The Unity Industry plan, also aimed at professionals and large companies, starts at $450 per month and offers specialized tools for developing industrial applications that utilize complex 3D data and real-time modeling. This plan is ideal for projects requiring the integration and processing of large data volumes, including CAD and other engineering applications.

In early 2024, Unity introduced a new monetization model that involved charging a fee for each game installation developed using their engine. This decision sparked widespread discontent among developers, particularly those whose applications generated many installations but did not yield corresponding revenue.

The Unity Runtime Fee was introduced as a fee to be paid after exceeding certain revenue and installation thresholds. For example, Unity Pro users faced thresholds of $1 million in revenue and 1 million installations per year. This raised concerns among developers, who pointed out the unfairness of the model, as many games could quickly accumulate installations through promotions or inclusion in subscription services without generating significant revenue.

Many expressed their dissatisfaction through social media, forums, and open letters, demanding that Unity cancel or revise the changes. Criticism centered on the fact that this model financially penalized developers for their games’ distribution success without accounting for actual commercial success.

Unity attempted to mitigate the situation by clarifying that the new fee would not affect most developers, as not all surpass the revenue threshold that triggers these charges. They also emphasized that the fee would only apply to new installations after January 1, excluding game reinstallations except in cases of operating system reinstallation or installation on different devices. It was also noted that for games distributed through subscription services, the fees would be borne by the service owners.

However, each new clarification seemed to worsen the situation, raising more questions and doubts in the gaming community. The situation was further complicated by a dispute with LizardFactory, a studio that donated part of its revenue to charity and became a victim of the new rules.

Ultimately, after ten days of intense discussions and criticism, Unity backed down. On September 22, the company officially apologized and softened the terms of use for its engine. It was announced that the Unity Personal plan would be exempt from the Runtime Fee, and the "Made with Unity" branding would no longer be mandatory. As of September 2024, when this article was written, the Runtime Fee has been completely canceled.

One of the most controversial aspects of Unity’s new monetization model was the mechanism for calculating installation fees, which did not account for actual game revenue. To illustrate, consider a hypothetical example where a game reaches 1 million installations but generates less than $200,000 in annual revenue for the developer.

Suppose a developer uses the paid Unity Pro plan. Under the new policy, after surpassing the threshold of 1 million installations and with revenue below $1 million, Unity begins charging a fee for each subsequent installation.

Assume the fee rate is $0.01 per installation. In this case, if the game reaches 1 million installations:

Total installation fee: 1,000,000 installations * $0.01 = $10,000.

This amount represents additional expenses payable to Unity, even if the game’s actual revenue is less than $200,000. This could pose a significant financial burden for the developer, especially if much of the revenue is already allocated to other operational costs and marketing.

The main problem with this model is that it fixes the fee based on the number of installations, without considering how much the developer actually earns from the game. This creates a situation where developers could be burdened with high fees even if their game does not generate significant revenue.

Such a model could deter small and independent studios from using Unity as a development platform, as the potential risks and financial obligations become too high. It could also stifle innovation, as developers may avoid experimenting with new ideas due to fear of high fees for game distribution.

With the introduction of the new installation fee model, it is important to understand how Unity monitors compliance with licensing terms and what legal aspects come into play. This includes verification mechanisms and consequences for developers who may fail to comply with their licensing agreements.

Unity employs several methods to track the use of its software and ensure compliance with licensing terms. These methods include:

• Product registration and license activation: Each instance of the engine requires registration and activation, allowing Unity to track who is using their products and how.
• Revenue and installation reports: Developers are required to submit reports on their revenue and installation numbers if they exceed set thresholds, enabling Unity to assess compliance with license terms.
• Automated data collection: Unity may automatically collect usage data, including the frequency and scope of software use.

Failure to comply with the licensing agreement can lead to serious legal consequences for developers, including:

• Warnings and cease-and-desist demands: Unity may initially issue a formal warning, demanding that violations be stopped.
• Legal action and litigation: In cases of serious or repeated violations, Unity may pursue legal action against the developer.
• Suspension or revocation of licenses: In extreme cases, Unity may suspend or fully revoke licenses, making it impossible to continue using their software for development or distribution.

Unity strives to maintain open and transparent relationships with developers. They provide clear documentation of their licensing policies and terms, as well as channels for feedback and support, enabling developers to easily get answers to their questions and resolve issues.

It is worth noting that while Unity has the right to monitor and take action against violators, they are also invested in maintaining a strong and healthy developer community. This ensures a balance between the need to enforce licensing terms and supporting innovation and creativity in the game development industry.