Unity Jumps After Revealing Plan to Cancel Runtime Fee, Raise Subscription Fees (NYSE:U)

Unity Software (NYSE:U) shares increased by 8% at noon on Thursday, after the company announced it was immediately waiving the runtime fee for its gaming customers while increasing subscription fees for its largest customers.

“Cancellation of the gaming time fee and introduction “These pricing changes will allow us to continue to invest in making games better for everyone while also being better partners,” said Matt Bromberg, CEO of Unity, in a statement. blog post Today.

The change does not apply to Unity clients outside the gaming industry.

Unity is returning to its current seat-based subscription model for all game customers.

“I’ve had the opportunity to engage with many of you over the last three months, and I’ve heard time and again that you want a strong Unity and that you understand that price increases are a necessary part of what allows us to invest in game development,” Bromberg said.

Fees will increase for the largest customers. The price of a Unity Pro subscription will increase by 8% to $2,200 per year. It will be required for all customers generating more than $200,000 per year in revenue and funding.

The Unity Enterprise subscription fee will increase by 25%. It covers Unity customers with more than $25 million in annual revenue and funding.

“From this point forward, we intend to return to a more traditional cycle where any potential price increases will be considered only on an annual basis,” Bromberg said.

The Unity engine enables developers to create real-time 3D and 2D content for games and other applications, such as industrial and entertainment.