Unity CEO John Riccitiello to Step Down in Wake of Installment Fee Controversy

In response to a major controversy surrounding the recently introduced and then retracted installment fees, Unity's John Riccitiello is stepping down immediately from his roles as president, CEO, chairman, and board member, as announced by the company today.

James M. Whitehurst will take on the role of interim CEO, president, and board member, while Roelof Botha, the lead independent director of the Unity board, will become chairman. The board will initiate a search process to find a permanent CEO.

Unity stated that Riccitiello will continue to offer guidance to the game engine maker during this transition period. The announcement did not specify the reasons for Riccitiello's departure, but in a statement, he expressed gratitude for leading Unity for nearly a decade and serving its employees, customers, developers, and partners, all of whom played a crucial role in the company's growth.

Riccitiello's decision to step down comes in the wake of significant backlash over the introduction of Runtime Fees by Unity. This new model involved developers being charged a small fee when a game created using Unity's engine was downloaded, once the game achieved a certain level of revenue and installs. However, developers and the gaming community strongly opposed this fee, with some even considering removing their games from the platform in response.

The day after Unity's initial policy announcement, the company attempted to clarify its stance, emphasizing that over 90% of its customers would not be affected by the change. However, this clarification did little to calm the concerns of users. Eventually, on September 22, Unity decided to reverse several key aspects of the policy, which helped quell the backlash. Nevertheless, some developers pointed out that Unity had already damaged trust within the community due to its initial announcement.

John Riccitiello's leadership at Unity has been marked by various controversial moments, including his apology to developers for referring to those who did not embrace microtransactions as the "biggest f*cking idiots." Riccitiello joined Unity in 2014 after leaving EA, where he served as CEO.

Unity remains a significant player in the game development industry, alongside Epic's Unreal Engine. It powers major games like Pokémon Go, Hollow Knight, and Genshin Impact. However, Riccitiello's departure further highlights the uncertainty surrounding the platform as it looks toward the future.