Unity Drops a Bombshell: What Will Be the Impact on Social VR Platforms?

A collage of Twitter (sorry, X) statements from smaller game developers announcing they are dropping Unity after the company’s announcement earlier this week (source)

On Tuesday, Unity dropped a bombshell on software developers: a new fee structure that will charge devs using its popular game engine on a per-install basis, with less than four months advance notice. Ars Technica reported:

For years, the Unity Engine has earned goodwill from developers large and small for its royalty-free licensing structure, which meant developers incurred no extra costs based on how well a game sold. That goodwill has now been largely thrown out the window due to Unity’s Tuesday announcement of a new fee structure that will start charging developers on a “per-install” basis after certain minimum thresholds are met…

This is a major change from Unity’s previous structure, which allowed developers making less than $100,000 per month to avoid fees altogether on the Personal tier. Larger developers making $200,000 or more per month, meanwhile, paid only per-seat subscription fees for access to the latest, full-featured version of the Unity Editor under the Pro or Enterprise tiers.

“There’s no royalties, no fucking around,” Unity CEO John Riccitiello memorably told GamesIndustry.biz when rolling out the free Personal tier in 2015. “We’re not nickel-and-diming people, and we’re not charging them a royalty. When we say it’s free, it’s free.”

Now that Unity has announced plans to nickel-and-dime successful Unity developers (with a fee that is not technically a royalty), the reaction from those developers has been swift and universally angry, to put it mildly. “I can say, unequivocally, if you’re starting a new game project, do not use Unity,” Necrosoft Games’ Brandon Sheffield—a longtime Unity Engine supporter—said in a post entitled “The Death of Unity.” “Unity is quite simply not a company to be trusted.”

Sheffield goes on to say:

…I can say, unequivocally, if you’re starting a new game project, do not use Unity. If you started a project 4 months ago, it’s worth switching to something else. Unity is quite simply not a company to be trusted.

What has happened? Across the last few years, as John Riccitiello has taken over the company, the engine has made a steady decline into bizarre business models surrounding an engine with unmaintained features and erratic stability.

Ultimately, it screws over indies and smaller devs the most. If you can afford to pay for higher tiers, you don’t pay as much of this nickle and dime fee, but indies can’t afford to on the front end, or often it doesn’t make sense in terms of the volume of games you’ll sell, but then you wind up paying more in the long term. It’ll squash innovation and art-oriented games that aren’t designed around profit, especially. It’s a rotten deal that only makes sense if you’re looking at numbers, and assume everyone will keep using your product. Well, I don’t think people will keep using their product unless they’re stuck. I know one such developer who is stuck, who’s estimating this new scheme will cost them $100,000/month on a free to play game, where their revenue isn’t guaranteed.

Unity is desperately digging its own grave in a search for gold. This is all incredibly short-sighted and adds onto a string of rash decisions and poorly thought through schemes from Unity across the last few years.

And it’s not just games that are affected by this news; many metaverse platforms are using Unity too, and it remains to be seen how this news will impact them. Among the social VR platforms I have blogged about, which rely on the Unity game engine, are:

  • Anyland
  • Bigscreen
  • ChilloutVR
  • Engage
  • Lavender
  • NeosVR
  • Rec Room
  • Sinespace/Breakroom
  • Somnium Space
  • VRChat

(Ironically, the social VR platform Sansar deliberately made the decision not to use a third-party game engine, to avoid being blindsided by exactly what happened to Unity developers this week. Not that it helped with uptake of the platform.)

So, I posted the following question to the most knowledgable (and opinionated!) group of metaverse experts I know, the over 700 members of the RyanSchultz.com Discord server. Here’s a sample of some of their comments:

The devs at VRChat say, on Reddit, that nothing will change. We shall see…this guy is staff:

Other comments and responses to the news, from my Discord, are:

Lots of big-name devs are swearing off of Unity, dropping it even for projects already in progress.

For Neos itself I’m actually worried the least. For years they have planned to eventually move away from Unity, so the way the FrooxEngine actually interfaces with Unity is quite minimal. But like, most other VR Social games don’t have the “luxury” of running on two Engines frankensteined together. VRC will probably have to pay for it, the likes of Chillout are likely still far too small for that… But it still sucks that they have that lingering over their head now as the platform continues to grow.

Yeah, I mean, this is exactly why you shouldn’t rely too heavily on a third-party like this, because they can pull the rug out from underneath you…I am quite sure that VRChat is going to be okay. It’s the smaller, more niche metaverse platforms I’m a little worried about.

Sansar’s in-house engine looks pretty good right now, eh?

Okay, so it’s clear to me that this IS gonna have a large impact on any company that uses Unity. Question: how hard is it to move from Unity to, say, Unreal, or Godot? Is it an impossible task?

For an existing game? You’re usually basically re-writing it from scratch at that point.

For an existing project, it’s like remaking it from the ground up. An open engine similar to Unity would be a much better choice probably, for example Stride 3D.

The skinny seems to be that Unity will undo this, but trust will have been broken.

The last commenter makes an excellent point: even if Unity responds to the backlash by retreating from this decision, the damage has already been done, and the trust between Unity and developers has been broken.

The comments over on Reddit have also been uniformly negative. Again, here’s just a couple of examples:

Whatever Unity does, they already lost the trust of devs. Even if they retract, it will be “for now”. Fuck them.

and:

Cost per license sold? Sure. That’s fine, you can just bake it into the cost of the game.

Cost per install? Charged to the developer/distributor???? Fuck no. You have no idea how much money each customer will cost you.

Initially, Unity stated the fee would apply every time the game was installed, or reinstalled. Then they backtracked that, but installs on multiple devices will have the fee charged multiple times. Install it on your PC? That’s a fee. Now also on your Steam Deck? That’s another fee. Your laptop? Fee again. Replaced your PC? Have another fee! And god forbid someone remembers that PC cafes are a thing. There’s zero information about how a “device” will be kept track of, so potentially just changing the hardware in a device will cause the fee to reset.

Piracy is a huge unknown. Unity says developers will simply have to trust that Unity’s anti-piracy solution works.

You just don’t do business like that, ESPECIALLY when you make this change retroactively. Companies are going to have to retool their entire profit estimation for something they cannot even account for.

Anyway, it will be interesting to watch as developments unfold over the next few weeks. Unity is a part of so much software development work (it’s even said to be a part of the upcoming Apple Vision Pro VR/AR headset!), so there will definitely be ripple effects. And, of course, the only people guaranteed to make money off this are the lawyers, so expect to see the lawsuits fly! Stock up on popcorn…

Fisk University Creates a Virtual Human Cadaver Lab Using the ENGAGE Social VR Platform

Fisk University, a private, historically Black university located in Nashville, Tennessee, will launch a virtual human cadaver lab for its pre-med and biology students this fall. The cadaver laboratory will use the social VR platform ENGAGE, in a partnership with Fisk University, HTC VIVE, T-Mobile, and VictoryXR (an educational content creator company using ENGAGE as a platform).

According to the official news release:

Inside the lab, students will examine the internal organs of various human systems, and the professor can even remove the organs from the body and pass them around for students to hold and open. Students will have the ability to enlarge the organ to a size large enough where they can even step inside to better learn how it works. In addition to organ systems, the cadavers will also include complete skeletal and muscle structures.

“With this cadaver lab, our pre-med students will no longer need to rely on other universities for advanced anatomy and biology classes,” said Dr. Shirley Brown, Dean of Fisk University. “Virtual reality technology takes our university to a level equal to the most advanced schools in the country.”

In the past, Fisk University has not purchased cadavers due to the high cost and maintenance. But with a virtual cadaver lab, the university can offer state-of-the-art scientific learning that’s affordable and easy to maintain. Virtual cadavers do not degrade, and over time additional specialties can be added to the software such as surgical procedures, comparative learning between human and animal as well as microbiology at the cellular level.

Here’s a two-minute promotional video for the project:

Tony Vitillo (a.k.a. SkarredGhost), an Italian man whose blog, The Ghost Howls, often has reviews of products and interesting news reports about the VR industry, paid a visit to the virtual laboratory and reported:

The…costs to own a cadaver lab is in the order of magnitude of millions of dollars. Not all universities can afford that. There is at the moment a slightly better alternative, that is using ultra-realistic synthetic cadavers, that are also able to simulate some motions of the human body (e.g. the heart pumping), but the cost of each one of them is $60-100,000. This means that to own them a university must invest much money anyway.

We all know that virtual reality can replicate real objects pretty well, so VictoryXR had the idea of trying to reproduce a cadaver lab in virtual reality: apart from the fixed cost for the 3D elements, this laboratory would scale pretty well with the number of students and would need almost no maintenance cost. This is a very smart solution to make education more accessible for medicine students. Thanks to this, many more universities would be able to afford to have a virtual cadaver lab, even in non-wealthy countries. We always talk about VR being able to democratize education, and this is one bright example of how it can do that.

Students assemble a skeleton puzzle in Fisk University’s virtual human cadaver lab

Tony came away from his brief demo favourably impressed:

I had just a short demo with the virtual lab, and I think that it is a good start for Fisk University and VictoryXR. I don’t think that at the moment it can replace the real experience with a cadaver because you miss all the tactile sensations, the weight, and also the creep of having a real organ in your hands. But it can be a good substitute to start learning about the human body, to observe the organs in detail, to start getting confidence with having a bone or a part of the body of someone else in your hands. It could be able to offer a good course, and after that, maybe the students can have just a few final lessons with real corpses in another location. It is a good way of giving value to many medicine universities not only in the U.S. but in the whole world, especially the ones that can’t afford to have real or synthetic cadavers for tests.

What impressed me the most is the potential that this solution can have in the future. There are things that VR can give to students that are hardly possible in real life. The fact that you can enter with your teacher inside an organ and examine it both at macro and micro level is one amazing thing for instance. The possibility of organizing minigames (like the puzzle) that are engaging and improve the learning efficiency via interactivity is something that VR enables and that would be too creepy to do in real life. The possibility of doing many simulated surgeries on the cadavers with the possibility of repeating every operation at no additional cost is another cool thing. 

Studying the muscles of the human body in ENGAGE

Thanks to Chris Madsen/DeepRifter of ENGAGE for the heads up, and Tony Vitillo/SkarredGhost for his report and pictures! You can read Tony’s review in full here, and I strongly recommend you follow his blog as well as my own!

Teaching an Indigenous Language Using Social VR at Georgian College

Maryam Ismail, a student in Georgian’s Anishnaabemowin and Program Development program, wears a VR headset (source)

I really think the format has improved my learning…After COVID-19, I can’t wait to go back to school, but keeping VR would add so much to the curriculum. I think it should be part of the curriculum.

—Maryam Ismail, a Georgian College student

Rob Theriault, who is Immersive Technology Lead at Georgian College in Barrie, Ontario, Canada, and president of the Canadian Chapter of the Immersive Learning Research Network, has worked with staff and faculty from Indigenous Studies to create an immersive Indigenous Language House that’s providing students in the college’s Anishnaabemowin and Program Development program a unique and fun way to connect to Anishnaabe culture through language.

Anishinaabemowin (also called Ojibwemowin, the Ojibwe/Ojibwa language, or Chippewa) is an Indigenous language, spoken in Manitoba, Ontario, and Quebec.

Some examples of Anishinaabemowin words and phrases

Georgian College reports:

The inspiration for one of the early pilots came from a session Rob attended on English as a second language. People were learning to order food inside a virtual coffee shop. He knew this approach would be a perfect fit for Georgian’s Indigenous language program. Michele O’Brien, program coordinator for all Indigenous programming, was quick to see the potential benefits.

The first module of language lessons in the program is based around the home. Using AltspaceVR, Rob built a house and furnished it and put information buttons on all the items in the house. Faculty member Angeline King and Elder Ernestine Baldwin translated a word list for everything so that when a student clicks on the button, the Anishnaabemowin word pops up.

The program has proven so successful that Jonathon Richter, CEO/President of the Immersive Learning Research Network (iLRN)…invited Michele and Angeline, along with other Indigenous groups, to attend a panel during the iLRN World Conference 2021 for a session on the iLRN House of Language, Culture, and Heritage – Teaching Native Language and Culture Using XR.

I am not allowed to embed the video from the iLRN 2021 conference on this blog, but you can watch it here on YouTube (it’s about an hour long).

In addition to AltspaceVR, the program has used the educational social VR platform ENGAGE. From a press release:

There is also a second house using the Engage software which includes voiceover translations with either King, Baldwin or another faculty member Mitchell Ackerman providing the pronunciation.

Georgian College is among a few schools in the world to offer Indigenous language education in an immersive virtual reality (VR) environment. (image source)

Georgian College is also making the virtual reality assets they’re building for language learning open source, so that they can be used by other Indigenous programs across Canada and around the world (please contact Rob Theriault for more information).

ENGAGE Announces a New Social VR Platform, ENGAGE Oasis

We want ENGAGE Oasis to be the LinkedIn of the metaverse.

—David Whelan, CEO, VR Education

VR Education, the Waterford, Ireland-based company that makes the educational social VR platform ENGAGE, has been doing well lately! Last year, they reported that revenue jumped 43%, to €1m (US$1,188,380). And the company just announced that they had successfully raised US$10 million in venture capital.

They’re also launching a new social VR platform called ENGAGE Oasis, aimed at the corporate market (a market segment that I like to collectively call YARTVRA: Yet Another Remote Teamwork Virtual Reality App):

Inspired by the VR simulation known as OASIS in the book and film ‘Ready Player One’ ENGAGE Oasis will be an always on, fully persistent virtual world, where ENGAGE clients can meet and sell products and services directly to each other. Designed for business professionals, corporations, young professionals, and college students, it is best seen as a cloud-based digital city where actual business can be done. Employees from the world’s largest corporations can connect with each other to generate new business ideas and deliver value to their respective organisations. ENGAGE Oasis aims to be an opportunity for corporate users to expand their customer base and provide immersive services at a reasonable price.

All the avatars and virtual locations will be tailored for professional users, and guidelines will be set by the owners of each sector. There will be no limits on digital artists or corporations regarding the virtual building blocks and styles used, allowing for unlimited branding opportunities. As part of this metaverse, a new marketplace will become available for
corporations and digital artists to sell digital items and provide services using non-fungible tokens, fiat currencies and
cryptocurrencies.

Now, as many long-time readers of the RyanSchultz.com blog well know, Auntie Ryan has OPINIONS… 😉

So I am going to go on record to say that “ENGAGE Oasis” is a terrible, TERRIBLE name, and I hope that VR Education changes it before launch! Everybody wants to jump on the Ready Player One bandwagon, it seems; this is the THIRD virtual reality platform that I know of that is called Oasis (here’s the first one; here’s the second one) .

As I have written before:

Another big problem with Oasis? As I mentioned earlier, it’s almost impossible to find this game on Google, due to so many other unrelated hits you get from searching on “Oasis”. Search on “Oasis VR” or “Oasis game” and you get the Ready Player One-branded experience by VIVEPORT, or the Chinese game company….Frankly, Oasis is a TERRIBLE name for a virtual world. It’s just too common a name for too many other things on the Internet.

Now, branching out from the profitable educational market (ENGAGE has gained 100 customers in just 2 years!) to launch a corporate cousin is a very savvy move by VR Education. They already have a viable, popular social VR platform, and it’s likely that those features which set ENGAGE apart from the competition (notably, three-dimensional recording and replaying of content) will make it into the Oasis product.

Other platforms, such as Breakroom by Sine Wave Entertainment (the makers of Sinespace), have seen great success recently, capitalizing on the unfortunate situation caused by the global coronavirus pandemic, selling to corporations and hosting virtual alternatives to real-life events such as conferences and training sessions. And I’m quite sure VR Education is also hungering for a slice of that pie!

VRScout reports:

“If Rec Room and Roblox are the TikTok and Twitch of the metaverse, we want ENGAGE Oasis to be the LinkedIn of the metaverse,” said David Whelan, CEO of VRE, in an official release. “We think that young professionals, corporations, digital artists, and service providers will love all the opportunities being part of the metaverse will lead to. With the pandemic and climate change causing businesses to rethink how they interact externally and internally, the virtual world provided by ENGAGE Oasis has the potential for exponential growth.”

ENGAGE is already a leader in the world of virtual communications, and our growing client base and proven technology underlines our belief that we can become the leader in the corporate metaverse. We look forward to updating the market on our progress, including launch partners, in the coming months.”

For more information on ENGAGE, visit their website, or follow them on social media: Facebook, LinkedIn, Twitter, and YouTube.