Unity CEO Resigns Immediately After Intense Pricing Backlash

The game development tool Unity followed a controversial pricing change that outraged gamers and developers. Following the intense pricing backlash, Unity CEO John Riccitiello resigned as the gaming boss. It is pertinent to mention here that no reason was given for Mr. Riccitiello’s abrupt departure.

The company actually wanted to charge studios every time a user installed a game using Unity’s code which powers thousands of modern video games. However, the fact is that Big developers already pay a licensing fee to use Unity in their games. Unity’s game engine is the code behind many famous video games – including Pokemon Go, Genshin Impact, and Beat Saber. It is typically used by small studios especially developers to make a video game and combines tools that handle things like animation and audio. The fact is that it is possible to create such an engine from scratch but it is complicated. That’s why many companies use ready-made versions to save time. Developers like Unity use it because of its wide service and ease of access for beginners.

Unity CEO Quits After Pricing Backlash

Reports claim that Mr Riccitiello wanted to alter the way the company charged developers. It prompted widespread anger with some threatening to stop using the technology altogether. Gamers and fans started to question if free-to-play games would have to be modified to be able to afford the new fees. The point worth mentioning here is that Unity was forced to vacate its San Francisco offices following a report of a death threat made on social media.

Mr Riccitiello says he was “truly humbled” by the reaction. He had squabbled with the gaming community before and was forced to apologize after using rude language to describe developers who disagreed with him on monetizing their games. He joined the company back in 2013 from Electronic Arts. In addition, he has been EA’s chief executive since 2007. However, he later resigned after accepting that he was “100% accountable” for the results. He stated:

“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. I look forward to supporting Unity through this transition and following the company’s future success.”

According to the reports, Mr Riccitiello abode Unity public in September 2020 in a stock market flotation. It valued the business at $13.6bn (£11.1bn). Its share price stood at nearly $200 over a year later but has since fallen and now trades at $29.70 each. reports claim that Unity has been growing its revenue for a long time. It reached $553m in the three months to 30 June, however, it still remains loss-making. The most recent quarterly results of the firm show a pre-tax loss of $188.5m.
Mr Riccitiello will be replaced as interim chief executive by James Whitehurst, who previously held an executive position at IBM. There have been no further words by the former Unity CEO yet. Let’s wait and watch what comes next. Stay tuned!

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Laiba Mohsin

Laiba is an Electrical Engineer seeking a placement to gain hands-on experience in relevant areas of telecommunications. She likes to write about tech and gadgets. She loves shopping, traveling and exploring things.

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