Video game software development company Unity Software Inc. today announced that its current chief executive officer is stepping down following a backlash in the gaming community from a new pricing model.

John Riccitiello, who until today served as chairman, president and CEO at Unity, has retired effective immediately, with former IBM Corp. President and Red Hat CEO Jim Whitehurst appointed interim CEO, president and member of the board. Roelof Botha, the lead independent member of the Unity board, has been appointed chairman.

Before serving as the head of Unity, Riccitiello was an investor, adviser and, from 2007 to 2013, the CEO of Electronic Arts Inc. Riccitiello has been CEO of Unity since October 2014. “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 said in a statement. “I look forward to supporting Unity through this transition and following the company’s future success.”

Riccitiello’s “retirement” was not a planned one and came just shy of a month after Unity, under his leadership, announced a new Unity runtime fee that’s based on game installations was set to go into effect starting Jan. 1, 2024.

Unity offers a cross-platform game engine that is used to create two-dimensional and three-dimensional games, interactive simulations and other experiences. The old Unity pricing plans were based on a subscription model, with different plans offering different features and support. There were no fees for installing or running games made with Unity.

The new model, as proposed by Riccitiello, still included a subscription model but also included a Unity runtime fee. The fee would mean that developers would have to pay for each installation of their game, even if they are using a free or low-cost subscription plan.

Suffice it to say that developers were not happy, with particular concern that the new pricing structure would disproportionately hurt indie developers, which often have lower margins than larger studios. Other developers also expressed concern that the new model would discourage them from participating in sales and promotions or from releasing their games on subscription services, as these could lead to more installations and higher fees.

Unity has since apologized for the proposed plan and scaled back proposed changes, but the damage was done and many developers said they would switch to another game engine. Although officially retiring, Riccitiello is clearly a sacrificial lamb as Unity attempts to rebuild trust with developers.

His replacement, Jim Whitehurst, is highly respected, having turned around Delta Air Lines while chief operating officer between 2001 and 2007 before joining Red Hat and serving as president and CEO from January 2008 to April 2020.

IBM announced a deal to acquire Red Hat for $34 billion in October 2018. The acquisition closed in July 2019, and once the companies were merged, Whitehurst was appointed president of IBM in April 2020. He stepped down as president of IBM in July 2021, going on to serve as an adviser to IBM through May 2022.

From turning around Delta through bankruptcy to dealing with the pandemic while at IBM, Whitehurst is seen as a turnaround specialist. These are skills that Unity, in the middle of its biggest-ever crisis, needs.

“With the company’s experienced leadership and passionate employees, I am confident that Unity is well-positioned to continue enhancing its platform, strengthening its community of customers, developers and partners, and focusing on its growth and profitability goals,” Whitehurst said.

In an interview with theCUBE, SiliconANGLE Media Inc.’s livestreaming studio in 2020, Whitehurst spoke about the need for crisis management in the context of the COVID-19 pandemic.

Photo: SiliconANGLE