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: Unity Software’s stock drops after new game developer fees announced

Unity Software Inc. U shares fell Wednesday after the app-monetization and game-engine company introduced new fees based on how often a developer’s game is downloaded. Unity shares dropped as much as 8% to an intraday low of $35.83 in Wednesday trading. In a blog post Tuesday, Unity said it was introducing “a Unity Runtime Fee” based upon “each time a qualifying game is downloaded” by a user. “We chose this because each time a game is downloaded, the Unity Runtime is also installed,” the company said. “Also we believe that an initial install-based fee allows creators to keep the ongoing financial gains from player engagement, unlike a revenue share.” Wells Fargo analyst Brian Fitzgerald, with a buy rating and a $54 price target, said in a note following the post that while developers “voice outrage online,” Unity’s price and value “has long favored developers.” Unity Runtime matters because it is the code that allows “Made with Unity” games work at scale.

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