Unity Boss Steps Down After Install Fee Controversy

The top figure in the software development company Unity, John Riccitiello, will step down from all positions and move to an advisory role until a permanent CEO is found.

Unity announced the decision on Oct. 9 in a statement to investors. “Unity, the world’s leading platform for creating and growing real-time 3D (RT3D) content today announced that John Riccitiello will retire as President, Chief Executive Officer, Chairman and a member of the Company’s Board of Directors, effective immediately,” the statement reads. “James M. Whitehurst has been appointed Interim Chief Executive Officer, President and a member of the Board. Roelof Botha, Lead Independent Director of the Unity Board, has been appointed Chairman. Mr. Riccitiello will continue to advise Unity to ensure a smooth transition.”

While Unity doesn’t provide a reason, recent announcements introducing fees that would charge larger developers each time a user installed its games situated Riccitiello at the center of huge controversy. In a clarifying , Unity said that the price change wouldn’t affect 90% of customers and outlined what a “new install” meant. It also introduced “cloud-based asset storage, Unity DevOps tools, and AI at runtime” at no extra cost.

Despite the changes only affecting the minority, they were seen as a sign of the times to come given Unity’s large market share and the threat of changes eventually trickling down to smaller developers. While the scale of the damage isn’t certain, Unity reaffirmed that this would have no large bearing on its expectations for Q3. A number of developers announced plans to leave Unity, while the creators of Among Us said that pulling the game was on the cards. Rival engine maker Epic Games, who developed Unreal Engine, has also been under fire for laying off 16% of its workforce.

Unity praised Riccitiello for his role in the company’s growth over nearly 10 years, transitioning the company from a one-time license model to a subscription model and empowering creators and developers. Whitehurst joins Unity after roles as former President and Senior Advisor at IBM and formerly of Red Hat.

Whitehurst said upon joining, “I am confident that Unity is well-positioned to continue enhancing its platform, strengthening its community of customers, developers and partners, and focusing on its growth and profitability goals. I look forward to working closely with the Board and our talented global team to execute on our strategy, and I anticipate a seamless transition.

Source: Unity

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