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gaming

EGDF: UNITY’S INSTALL FEES ARE A SIGN OF LOOMING GAME ENGINE MARKET FAILURE

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2 years ago

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Reading Time: 6 minutes

 

Step by step, video game engines are becoming key gatekeepers of European cultural and creative sectors. Currently, Unity dominates game engine markets, Unreal being its primary challenger. These two engines are not just clear market leaders in the game industry but increasingly vital market actors in film, architecture, and industrial design and simulations. In 2022, Unity reported that globally, 230,000 game developers made and operated over 750,000 games using the Unity Engine and the Unity Gaming Services portfolio of products.

Unity’s new fee structure is going to have a drastic impact on the game industry.

Over the years, the Unity game engine has reached close to unofficial industry-standard status in some game markets. Its well-designed tools and services have lowered the market access barriers in the game industry. Furthermore, it has played a crucial role in removing  technological barriers to cross-platform game development. Now, Unity has informed the game dev community that it will move from subscription-based fees to subscription and install-based fees, which will significantly increase the game development costs for most game developers relying on their services. EGDF finds it unfortunate that Unity has significantly damaged its reputation as a reliable and predictable business partner with these sudden and drastic changes in its pricing principles.

Bigger game developer studios have the luxury of being able to develop their own game engines. Consequently, market uncertainty and significantly increased service provider risks caused by Unity’s new fee structure will hit, in particular, SME game developers. It will be much harder for them to build reliable business plans, make informed decisions on game engines, and run a profitable business. Many of these studios struggled to access risk funding before Unity’s announcement, and it has only worsened their situation.

Unity’s decision will have a broader impact on the whole game industry ecosystem. Many professional game education institutions have built their curriculum on the Unity game engine. If Unity’s new pricing model starts a mass exodus from Unity’s engine, it will lead to rapid changes in professional game education itself and place many young industry professionals who have built their career plans on mastering Unity’s tools in a very difficult position.

Although Unity’s decision will cause significant challenges for the industry, EGDF kindly reminds that instead of focusing on blaming individual Unity employees for the changes, it is far more productive to focus on taking measures that increase competition in game engine markets.

Unity’s anti-competitive market behaviour must be carefully monitored, and, if required, the European competition authorities must step in. 

Unity is an increasingly dominant market player in the game markets. According to Unity’s own estimate, in general, 63% of all game developers use its game engine. The share can be even higher in some submarkets. Unity estimates that 70% of top mobile games are powered by its engine. Unsurprisingly, Unity’s game engine is now a de facto standard in mobile game markets to the extent that whole formal professional game education degree programmes have been built on training its use. However, Unity’s market dominance is not just based on the quality of its game engine. It is also an outcome of aggressive competition practices and systematic and methodological work of making game developers dependent on Unity services.

How Unity bundes different services together potentially distorts competition in game middleware markets. Over the years, Unity has, step by step, bundled its game engine more and more together with other game development tools under the Unity Gaming Services portfolio. Unity is not just a game engine; it is also a player sign-in and authentication service, a game version control tool, a player engagement service, a game analytics service, a game chat service, a crash reporting tool, a game ad network, game ad mediation tool, an user acquisition service and in-game store building tool. This creates a significant vendor lock risk for game developers using Unity services. It also makes it difficult for many game middleware developers to compete against Unity and, all in all, significantly strengthened Unity’s game engine’s market position compared to its rivals.

Now, Unity is strategically using install fees to deepen the lock-in effect by creating a solid financial incentive to bundle other Unity services even closer to its game engine: “ Qualifying customers may be eligible for credits toward the Unity Runtime Fee based on the adoption of Unity services beyond the Editor, such as Unity Gaming Services or Unity LevelPlay mediation for mobile ad-supported games. This program enables deeper partnership with Unity to succeed across the entire game lifecycle.” This will, of course, drastically impact Unity’s direct competitors.

Unity’s install fees are an excellent example of Unity’s potentially anti-competitive market behaviour. It is clear that if Unity’s pricing model had, in the past, been similar to the now-introduced model, it would likely never have achieved the level of dominance it enjoys today, as more developers would have chosen another alternative in the beginning.

The fact that Unity’s new install fees are only targeted at video games and do not apply to other industries logically leads to a question: Is Unity setting prices below cost level at different market segments, or is Unity charging excessive prices in game markets? Furthermore, does the fact that Unity is now introducing an install fee on top of the licensing fee mean that licensing fees have before been below cost level? Or does the introduction of install fees on top of the licensing fees of their game engine allow them to provide other, lock-in generating, services below cost level?

In the end, Unity has built its dominant position in game markets for years and systematically made game developers more dependent on it. It is a good question if Unity has now crossed the line of abusing its market dominance on weaker trading parties that deeply depend on its services. Game productions can take years, and game developers cannot change their game engine at the last minute, so they are forced to accept all changes in contract terms, no matter how exploitative they are. Unity must know that if they had given more notice, many more developers might have had a realistic chance of abandoning Unity altogether by the time the new pricing came into play.

The new install fees will limit game developers’ freedom to conduct business as it pushes them to implement Unity ad-based business models even in games that otherwise would not have ad-based monetisation. Furthermore, this will create a competitive disadvantage for those game distribution platforms that do not use ad-based monetisation at all (e.g. subscription services and pay-per-download games), as Unity is de facto forcing them to increase their consumer fees compared to channels that allow the use of Unity’s ad-based monetisation tools.

The new install fees will likely lead to less choice for consumers. Install fees will allow Unity to extract value from games that generate a lot of installs through, e.g. virality, but do not necessarily generate money. Install fees will lead to markets where game developers want to limit the downloads and try to avoid installs from the wrong players. This can potentially kill part of the game market. For example, indie developers that have an unfortunate mix of being a success on the number of installs but that are struggling to generate revenue, or hyper-casual game studios based on combining a huge install base with minuscule revenue generated per game.

In the long run, the EU needs to update its regulatory framework to answer the challenges caused by dominant game engines.

Unity’s install fees demonstrate why the EU needs a new regulatory framework for unfair, non-negotiable B2B contract terms. Contract terms Unity has with game developers are non-negotiable. With the new non-negotiable install fee, European game developers have to either withdraw their games from markets, increase consumer prices or renegotiate their contracts with third parties. For example, if a game memory institution makes games available for download on their website, a game developer studio must now ask for a fee for it or ban making European digital cultural heritage available to European citizens. The three-month time frame Unity is providing for all this is not enough.

The Commissions should introduce a specific regulation for non-negotiable B2B contract terms. The regulation should provide sufficient time (e.g. in a minimum, six months) for markets to react to significant changes in non-negotiable terms and conditions that a service provider has communicated to their business users in a plain, clear and understandable manner (e.g. now it is unclear how Unity counts the installs). Furthermore, the Commission should bring much-needed market certainty by banning retroactive pricing and contract changes.

The Commission should include game engines in DMA. While reviewing the recently adopted Digital Markets Act (DMA), the Commission should consider lowering the B2B user thresholds and adding gatekeeper game engines under its scope. This would, for example, ensure that Unity cannot use data it collects through its game engine to gain an unfair competitive advantage for its other services like advertisement services.

The Commission should increase its R&D support for the European game industry. The fact that there is no major competitor for Unity Engine that does not require constant back-end server connection is a market failure in itself. The Unity Game engine is not fully scalable because Unity has built its engine in a way that it calls home every time it is installed to report instals for Unity. Consequently, the Commission should strengthen its efforts to support the emergence of new European game technology and business service providers. In particular, the Commission should increase its support for privacy-friendly open-source alternatives for game engines, like for example Godot or Defold or similar, that do not require constant back-end server connection and thus have no need for scalable revenue-based fees or install fees.

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gaming

Phantum Introduces High-End Mousepads with Collectible Packaging and Parisian Design Roots

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4 hours ago

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May 21, 2025

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Bridging the gap between functional hardware and considered design, Phantum debuts its first line of high-performance mousepads. The collection is built for users who demand precision but won’t compromise on aesthetics. Developed in Paris by founders Amine G. and Victor B., the mousepads combine minimalist design with carefully selected materials and collectible elements, positioning the product as a functional tool and a design object.

Created for gamers and digital creatives, Phantum’s mousepads emphasize tactile performance while remaining visually restrained. The surfaces are crafted using Japanese Poron and advanced fabrics chosen for their durability, responsiveness, and sensory qualities. Each product is designed to enhance, not distract from, the overall composition of a desk setup.

The company’s visual language draws on space, transparency, and disappearance themes, an intentional move to create objects that integrate flawlessly into a work or play environment. “Every detail reflects our DNA: clean, sharp, and futuristic,” said co-founder Amine G., whose tech-focused YouTube channel, MRG TECH, has built a following of over 200,000 subscribers. “We create tools that disappear under the hand but leave a lasting impression through design, feel, and finish.”

Phantum’s founders launched the brand after finding few products that met their standards for both performance and design integrity. The debut line is only the beginning: the team is developing glass mousepads and matching performance sleeves, with plans to expand into a broader ecosystem of desk essentials. Each new release will continue to feature collectible packaging designed to add narrative value rather than act as decoration.

Though recently launched, Phantum is already drawing attention beyond France, particularly in Latin America, where design-conscious gamers have begun to integrate the mousepads into their setups. The first collection is now available on phantum.co, with new formats and accessories to follow.

The post Phantum Introduces High-End Mousepads with Collectible Packaging and Parisian Design Roots appeared first on European Gaming Industry News.

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Gamecity Hamburg Supports six new Digital Games with Prototype Funding

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2 days ago

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May 19, 2025

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In the latest round of Prototype Funding, Gamecity Hamburg, part of Hamburg Kreativ Gesellschaft, supports six promising digital games with up to 80,000 euros each as a non-repayable grant. This funding enables start-ups in Hamburg and supports companies in developing marketable prototypes. In addition, start-ups and developers can apply for Gamecity Hamburg’s Games Lift Incubator until June 10: https://www.gamecity-hamburg.de/de/inkubator/

The awarding committee selected projects with the greatest market potential from the many applications. Including this seventh round of funding, the development of 37 prototypes has been supported as part of Prototype Funding since 2020. The application phase for the next Prototype Funding round will start in spring 2026.

“The high quality of the projects submitted to this funding round led to an intensive decision process within the awarding committee. The funded projects show a wide variety of genres, ideas, and teams. With the Prototype Funding, we are supporting established companies and up-and-coming start-ups in Hamburg as a games location,” commented Dennis Schoubye, Head of Gamecity Hamburg and member of the awarding committee.

The 2025 funding recipients were selected by the awarding committee, consisting of Hamburg industry experts Nina Müller (VP Publishing & Development Services, Goodgame Studios), Jonas Hüsges (Publishing Director, Daedalic Entertainment), Valentina Birke (Director Indie Arena Booth / Super Crowd Entertainment), Michael Schade (CEO & Co-Founder ROCKFISH Games) and Dennis Schoubye (Head of Gamecity Hamburg).

The Funded Projects 2025

  • NeverLight by Nightless Games – € 80,000
  • Pet Universe by Tivola Games – € 80,000
  • Space Station Manager by gameXcite – € 80,000
  • Unbreachable by Buckfish – € 72,000
  • Deep Fog Signals by Symmetry Break Studio – € 32,000
  • Cosmic Run by Zinktank Labs – € 30,000

NeverLight by Nightless Games

NeverLight is a dark, cooperative role-playing game with fantasy and extraction elements, in which up to three players act as hunters in an endless night in search of terrifying monsters and collect valuable loot. The game combines monster hunting with the excitement of having to bring each reward to safety with the team to receive it.

Pet Universe by Tivola Games

In the 3D animal shelter simulation “Pet Universe”, players build their animal shelter from the ground up, organize animal care, collect donations, and design the shelter grounds according to their own ideas. The aim is to care for the animals with their individual needs and to find them a loving home.

Space Station Manager by gameXcite

In this strategy building game with real-time space battles, players manage a space station that serves as a base for spaceships, battles, recruitment, and a strategy hub for missions. In addition to organizing the base, players manage their limited resources and various upgrades, improve crew morals, and explore the galaxy with their individual fleets.

Unbreachable by Buckfish

In the multiplayer strategy game “Unbreachable”, players build a fortress in each run that competes with ten castles of rival players. Players strategically construct the different fortress buildings to increase attack power or minimize weaknesses to climb the leaderboard in competition with other players.

Deep Fog Signals by Symmetry Break Studio

In this sci-fi horror game with puzzle mechanics, players are trapped in the communication room of a remote research station during a toxic storm. To escape, they must coordinate the various crew members, decipher cryptic transmissions, and complete the research as the threatening situation escalates over several days.

Cosmic Run by Zinktank Labs

In this humorous and fast-paced roguelite, players fight their way through space with their ship in order to escape from a capitalist alien dictatorship. Weapons, shields, upgrades for the engine, and customization of the ship determine the narrative of the game. Depending on the character chosen, the course of the game and the story told vary in several runs.

All detailed information on the teams and games can be found at: https://gamecity-hamburg.de/funding/#Funded_Projects_2025

Developers, start-ups, and companies from Hamburg were able to apply for Gamecity Hamburg’s prototype funding from March 3 to April 7. In 2024, Gamecity Hamburg introduced a diversity checklist when applying for prototype funding, the answers to which can optionally be used by the awarding committee in the evaluation process.

The next application phase for prototype funding will start in spring 2026.

Further funding opportunities through Gamecity Hamburg

Each year, the Games Lift Incubator supports five teams, developers, and start-ups in the development of digital games. In addition to € 15,000 in start-up funding, the recipients receive a comprehensive coaching and mentoring program with international experts as well as workshops and follow-up individual support. Since 2024, the program has also included a visit to an international industry event.

Teams and developers can currently apply for the Games Lift Incubator until June 10.

All information can be found at: https://gamecity-hamburg.de/incubator/apply-now/

The post Gamecity Hamburg Supports six new Digital Games with Prototype Funding appeared first on European Gaming Industry News.

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HYPROP MTN SHIFT Gaming Experience2025: South Africa’s Biggest Gaming Showdown Returns

Published

5 days ago

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May 16, 2025

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From qualifiers to finals, EAFC 25 to Beat Saber, Over R250 000 in prizes and two champions to crown – this is South Africa’s ultimate gaming experience!

South Africa’s biggest gaming tournament is back. The 2025 MTN SHIFT Gaming Experience kicks off on 18 May, bringing months of competitive energy, in-centre activations, and serious prize money to malls across the country. This year’s edition raises the stakes with the return of the EAFC 25™ National Football Tournament and the debut of the MTN Beat Saber Challenge – two national titles, one massive celebration of gaming culture.

Over five months, eight Hyprop shopping centres will play host to a mix of online qualifiers and live in-mall events, creating a national stage where gamers of all levels can test their skills, win prizes and join a fast-growing community of South African players. The top contenders will face off in the National Finals at Canal Walk from 17 to 21 September, with R50 000 on the line in the EAFC 25™ Football Final and more prizes up for grabs in the Beat Saber showdown.

Tournament Dates and Venues:

  • Rosebank Mall

Online Qualifier: 18 May | In-Centre Event: 23–25 May

  • Somerset Mall

Online Qualifier: 25 May | In-Centre Event: 30 May–1 June

  • Woodlands

Online Qualifier: 7 June | In-Centre Event: 13–16 June

  • The Glen

Online Qualifier: 22 June | In-Centre Event: 27–29 June

  • Table Bay Mall

Online Qualifier: 13 July | In-Centre Event: 18–20 July

  • Clearwater Mall

Online Qualifier: 3 August | In-Centre Event: 8–10 August

  • Capegate Mall

Online Qualifier: 31 August | In-Centre Event: 5–7 September

  • Canal Walk (National Finals & Last Qualifier)

Online Qualifier: 7 September | In-Centre Event: 17–21 September

“The SHIFT Gaming Experience is more than a tournament; it’s where South African gamers show up, show off and celebrate what they love,” says Christie Stanbridge, Brand and Campaigns Marketing Manager at Hyprop. “From football simulations to VR rhythm battles, we’ve created something that speaks to every kind of player. Whether you’re competing or just watching, there’s always something happening.”

The format combines online, and in-person play. Qualify online on the ACGL platform, then take on your opponents in-centre across malls in Johannesburg, Cape Town, and Pretoria. Each in-mall weekend features the EAFC 25™ tournament, daily Fighting Cups, a PC Gaming Zone powered by PCBuilder, Carry1st COD Mobile and the popular SuperSprint lap challenge presented by the Toyota Gaming Engine.

Gamers can also go head-to-head in Tekken, Street Fighter 6, Brawlhalla, Rocket League, Minecraft and Call of Duty: Mobile, with dozens of R1 000+ gift card prizes on offer each weekend. The Beat Saber Challenge, hosted by MTN and playable both in-mall and on MTN’s Battle+ platform, brings a high-energy VR experience into the mix. Players with the highest Beat Saber scores at each mall qualify for the National Final – and anyone who tries it stands a chance to win a gaming PC worth R50 000.

“We’re creating spaces where South Africans can compete, connect and get rewarded for their passion,” says Jason Probert, General Manager: Digital Services at MTN South Africa. “Whether it’s with Beat Saber or Battle+, we want our community to know that gaming lives here.”

The SHIFT Gaming Experience also makes space for younger players. Friday events feature tournaments designed for schools and under-18 gamers, offering dedicated Minecraft build challenges, EAFC 25™ scholars only tournament and Rocket League face-offs – all with real prizes.

The post HYPROP MTN SHIFT Gaming Experience2025: South Africa’s Biggest Gaming Showdown Returns appeared first on European Gaming Industry News.

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