John Riccitiello resigned as CEO of the game development tool Unity in response to a pricing change that angered both consumers and developers.
The company intended to charge studios each time a game using Unity’s code, which powers thousands of modern video games, was installed.
Large game developers already pay a licensing fee to use Unity.
The company has since retracted the majority of its intentions and issued an apology.
Mr. Riccitiello is leaving the company effective immediately, according to Unity.
Many renowned video games, such as Pokemon Go, Genshin Impact, and Beat Saber, utilize Unity’s game engine, which is typically employed by small studios.
It is software used by developers to create video games, and it incorporates tools for animation and audio.
It is feasible to construct such an engine from scratch, but the process is complicated, so businesses frequently utilize prefabricated versions to save time.
Developers favor Unity in particular due to its widespread use and beginner-friendliness.
However, Mr. Riccitiello’s September announcement of intentions to change how the company charged developers sparked widespread outrage, with some threatening to abandon the technology entirely.
Gamers and admirers questioned whether free-to-play games would need to be altered to accommodate the new fees. And Unity was compelled to evacuate its San Francisco offices after a report of a social media death threat.
Mr. Riccitiello subsequently told the New York Times that the reaction had “truly humbled” him.
However, he had previously clashed with the gaming community and was forced to apologize after using vulgar language to characterize game developers who disagreed with him regarding the monetization of their games.
The sudden departure of Mr. Riccitiello was not explained.
He joined the firm in 2013 from Electronic Arts, the publishing juggernaut responsible for EA Sports FC (formerly known as FIFA), The Sims, and Mass Effect.
He had been the CEO of EA since 2007, but resigned after conceding that the company’s results would fall short of expectations and that he was “100% accountable.”
“It’s been a privilege to lead Unity for nearly a decade and serve our employees, customers, developers and partners, all of whom have been instrumental to the company’s growth,” Riccitiello stated in a press release.
“I look forward to supporting Unity through this transition and following the company’s future success.”
In September 2020, Mr. Riccitiello took Unity public in a stock market IPO that valued the company at $13.6 billion (£11.1 billion). Its share price crested at nearly $200 per share over a year later, but has since declined to $29.70 per share.
While Unity has increased its revenue, which reached $553 million in the quarter ending 30 June, the company is still losing money. Recent quarterly results reveal a pre-tax loss of $188.5 million.
James Whitehurst, who previously held an executive position at IBM, will replace him as interim chief executive.
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