Gaming
John Riccitiello has stepped down as the CEO of Unity, a game development tool, following an uproar over a contentious pricing adjustment that drew criticism from both gamers and developers.
Unity’s initial proposal involved charging studios for each game installation using Unity’s code, which is the backbone of numerous modern video games. While major developers already pay a licensing fee for Unity usage in their games, the proposed changes faced significant backlash.
Unity has since backtracked on most of its plans and issued apologies. The company announced that Riccitiello is retiring from the position with immediate effect.
Unity’s game engine is widely used and serves as the code for popular video games like Pokemon Go, Genshin Impact, and Beat Saber, particularly among small studios. The software streamlines game development by providing tools for animation, audio, and other aspects.
In September, Riccitiello’s plans to alter the pricing structure provoked widespread anger, with some developers considering discontinuing the use of Unity. Concerns were raised about the impact of free-to-play games and the affordability of the proposed new fees. The situation escalated to the point where Unity had to evacuate its San Francisco offices due to a reported death threat on social media.
Riccitiello, who joined Unity in 2013 from Electronic Arts (EA), faced previous clashes with the gaming community and had issued apologies for using crude language to describe developers who disagreed with his stance on monetizing games.
The abrupt departure of Riccitiello from Unity was not accompanied by a specified reason. He led the company to a stock market flotation in September 2020, valuing Unity at $13.6 billion. Despite revenue growth, with Q2 2023 reaching $553 million, Unity remains in a loss-making position, reporting a pre-tax loss of $188.5 million in the most recent quarterly results.
James Whitehurst, formerly in an executive role at IBM, will take over as interim CEO of Unity following Riccitiello’s departure.
