John Riccitiello, the President and CEO of UNITY, has announced his immediate retirement from the company, along with his positions as chairman and board member. James Whitehurst has been appointed as the interim CEO.
Unity CEO John Riccitiello Steps Down After Pricing Blowup.pdf
1. Unity CEO John Riccitiello Steps
Down After Pricing Blowup
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John Riccitiello, the President and CEO of UNITY, has announced his immediate retirement from
the company, along with his positions as chairman and board member. James Whitehurst has
been appointed as the interim CEO. Unity has stated that John Riccitiello will provide guidance
during the transition as the company initiates a comprehensive search for a new CEO.
Riccitiello’s abrupt retirement follows Unity’s controversial decision to modify its fee structure
for its cross-platform game engine. This change would have introduced a “runtime fee,” charging
developers 20 cents each time a player installed a game after it reached 200,000 downloads and
$200,000 in revenue. This change would have also applied retroactively, affecting developers
with ongoing or already released games. This decision led to widespread backlash from
developers, with some even demanding John Riccitiello’s resignation. Unity eventually reversed
some of these changes, but the damage to the company’s reputation remained significant.
Privilege to have led Unity for nearly a decade
2. For some developers, Unity’s credibility has been severely damaged, and they question the
company’s commitment to its promises and updates that benefit PC and console developers.
Brandon Sheffield, the founder of game developer Microsoft, expressed skepticism, stating that
Unity had done irreparable harm to its brand in the eyes of game developers.
In a brief statement within the company’s press release, John Riccitiello, who had been with
Unity since 2013 as a board member and assumed a leadership role in 2014, described it as a
privilege to have led Unity for nearly a decade and to have served its employees, customers,
developers, and partners, all of whom played a crucial role in the company’s growth.
Unity Software’s John Riccitiello retiring as president and CEO
It’s worth noting that John Riccitiello had previously made controversial statements about
monetization in game development, including apologizing for referring to developers as “some of
the biggest idiots” in response to criticism regarding early monetization in the development
process.
Unity recently faced backlash from many of its loyal game developers
In an effort to prevent a stock market panic, Unity has announced that it is reiterating its earlier
provided guidance for its fiscal third-quarter financial results, scheduled to be disclosed on
November 9.
Roelof Botha, who serves as the lead independent director on the Unity board, has been named as
the new chairman. Unity has stated that Riccitiello will remain involved in an advisory capacity
to facilitate a seamless transition. This development doesn’t come as a surprise, considering that
Unity recently faced backlash from many of its loyal game developers due to a pricing adjustment
based on download numbers, which was later rescinded following a significant outcry.