Two companies raised prices on locked-in customers. One backed down.
Unity's per-install fee lasted a year before it was canceled. Broadcom ended VMware perpetual licenses and held, while Gartner inquiries about alternatives rose 275%. Lock-in is a guess about what leaving costs.
Transcript
Two companies tried to charge more to customers who seemed locked in. One backed down. The other did not.
In September 2023, Unity announced a fee on every install of a game built with its engine. In November 2023, Broadcom closed its $84.2 billion purchase of VMware, and ended perpetual licenses.
Developers revolted. Unity revised the fee ten days later. Its chief executive retired in October. And in September 2024, Unity canceled the fee entirely, going back to seat pricing, with Unity Pro up 8%.
By 2024, games built on Unreal Engine earned 31% of Steam sales, passing Unity's 26% for the first time since 2018.
Broadcom held its ground. Customers reported price rises of as much as twelve times. Gartner inquiries about VMware alternatives rose 275%, and roughly half of VMware's midmarket base let their licenses lapse.
Lock-in is a claim about what it costs your customer to leave. Unity found out that cost was smaller than it thought. Broadcom is still finding out.
The records behind this video
Every figure in the video comes from these Decision Records, each with its sources.
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