CEO John Riccitiello has retired from recreation growth software program firm Unity after presumably its worst month of unhealthy headlines ever. The tech firm that’s slowly morphed into an in-game promoting agency introduced a complicated and seemingly predatory new set of charges for recreation makers in September, solely to stroll the coverage again after studios threatened to desert the Unity engine transferring ahead.
James M. Whitehurst, former head of the IBM-acquired open supply software program firm Pink Hat, will take over from Riccitiello as interim CEO whereas Unity’s board of administrators seek for a brand new long-term substitute. “It’s been a privilege to guide Unity for practically a decade and serve our workers, clients, builders and companions, all of whom have been instrumental to the Firm’s progress,” Riccitiello mentioned in a press launch. “I sit up for supporting Unity by way of this transition and following the Firm’s future success.”
Riccitiello joined Unity again in 2014 shortly after leaving Electoronic Arts. He oversaw the sport engine firm’s shift from one-time licensing charges to an ongoing subscription mannequin, launched the IPO in 2020, and made a sequence of acquisitions, together with the in-app monetization agency IronSource in 2022. When Unity first went public, its inventory value was round $68. As we speak it’s simply over $30.
As soon as synonymous with the explosion of creativity and experimental design within the indie gaming house, Unity is being left by Riccitiello a month after a bungled new monetization technique rollout burned bridges with tons of recreation makers. The preliminary messaging made it sound like recreation builders may be charged charges each time their recreation was put in, together with retroactively.
A follow-up apology by president and normal supervisor Marc Whitten later clarified that the brand new phrases would solely apply starting in 2024, and laid out a lot greater carve-outs for smaller studios whose video games don’t hit a sure threshold of earnings. However for a lot of builders it was too late. Their belief within the firm had already been irrevocably shaken. Re-logic, maker of the Steam hit Terraria, pledged $200,000 towards the creation of a Unity competitor, and Slay the Spire dev, Mega Crit, says it would nonetheless transfer to rival recreation software program platform Godot.
Rethinking monetization extra aggressively was additionally certainly one of Riccitiello’s legacies at EA. His seven years on the FIFA (now EA Sports activities FC) and Battlefield writer noticed it experiment with day-one DLC, microtransactions, and a give attention to post-launch content material. Whereas there was no week-long disaster second on the size of what occurred at Unity final month, it’s clear he helped usher within the firm’s present live-service period, which many gamers now really feel nickel-and-dimed by. Madden and FIFA’s lootbox modes had been each added whereas he was head of EA, although they didn’t turn into the billion-dollar windfalls they’re at this time till the tenure of his successor, present CEO Andrew Wilson.
Maybe nothing summed up Riccitiello’s time at each EA and Unity higher than one other controvertial incident final 12 months. In an interview with Pocketgamer.biz in July 2022, he referred to as builders who don’t take into consideration monetization early within the course of “fucking idiots.” He instantly walked the feedback again the following week, calling articles about it “clickbait” that took his remark out of context, however later apologized, saying he ought to have chosen his phrases extra fastidiously.
That unforced error got here shortly after the corporate revealed lots of of layoffs on the identical time it was shopping for IronSource in a $4.4 billion all-stock deal. 600 extra had been laid off at Unity earlier this 12 months. In the meantime, Riccitiello, along with the hundreds of thousands he has in Unity inventory, can be stored on wage till April of 2024.
Replace 10/11/2023 4:50 p.m. ET: SFGate reviews that Riccitiello is ready to earn as much as $8.4 million by way of inventory choices over the following six months. That’s along with the roughly $253 million he already holds in present Unity inventory.
