How Unity CEO Matt Bromberg stopped the ‘war’ against its customers

Key takeaways

Matt Bromberg emphasizes the need for Unity to restore trust with its developers after a period of turmoil and dissatisfaction.
Unity's primary role is as a game engine and platform provider, not a game developer, focusing on improving developer relationships and experiences.
Future growth in gaming may come from web gaming and new device experiences, with the importance of understanding consumer behavior driving change.
Cultural transformation and the behavior of employees are critical to the internal restructuring of Unity, more so than merely changing the org structure.
Bromberg envisions a collaborative future for Unity, utilizing AI and enhanced tools to empower developers in creating innovative gaming experiences.

Summary

Unity's Role and Challenges

In the episode, Matt Bromberg, the CEO of Unity, discusses the company’s crucial position within the gaming industry, highlighting that Unity is fundamentally a game engine provider rather than a game developer. He elaborates on how Unity is integrated into many mobile games and applications, positioning it as an essential tool for developers. As the gaming industry faces a contraction, with studios shutting down and unsuccessful investments in new trends like the metaverse, Bromberg focuses on Unity’s ability to remain relevant and help developers innovate in a changing landscape.

The Impact of Leadership Changes

Bromberg took over as CEO during a tumultuous time for Unity, characterized by dissatisfaction from developers over pricing models, particularly the controversial runtime fee that his predecessor announced. He describes this period as a 'war' with customers and emphasizes his commitment to rebuilding trust and collaboration with Unity’s community. By rolling back the runtime fee and restructuring the company's leadership to reflect a more customer-centric approach, Bromberg aims to enhance Unity's relationship with its developers.

Future Growth and Optimism

Bromberg expresses a strong belief in the future of both Unity and the gaming industry, noting that creativity and innovation have historically driven growth. He cites that while some trends, like the metaverse, may have floundered, there remains significant potential for growth in areas like web gaming and new device experiences. He emphasizes the importance of understanding consumer needs and tailoring Unity's offerings accordingly. Bromberg’s approach is about leveraging Unity’s platform to help developers better monetize and engage their audiences.

Culture and Structural Changes

The discussion evolves into the topic of Unity's corporate culture under Bromberg's leadership. He distinguishes between culture and structural changes, insisting that improving behavior and communication is more vital than merely reshuffling organizational charts. By fostering a culture of transparency and collaboration, he aims to empower employees to drive innovation. Bromberg acknowledges the challenges of layoffs and restructuring but believes they are necessary steps toward creating a leaner and more focused company.

Show notes

Unity is one of those hidden in plain sight companies we love here on Decoder, and CEO Matt Bromberg is in many ways the perfect Decoder guest. He's been on the job less than a year and took over in a moment of crisis. He describes the company as being "at war with its customers" before he joined, and he's not wrong.

The game industry right now is also contracting overall — studios are closing, and some big bets on things like the metaverse and live service games haven’t paid off. So we talked about all that, and where Matt sees growth ahead: Unity isn’t just a game engine provider, but the platform for everything from running those big live services and the monetization on top of them.

Links:

Unity’s struggles continue with fresh wave of layoffs | The Verge

Unity attempts to turn things around with latest game engine release | The Verge

Unity has eliminated its controversial runtime fee | The Verge

‘We want to be a fundamentally different and better company’ | IGN

John Riccitiello is out at Unity, effective immediately | The Verge

Unity is laying off 25% of its staff | The Verge

Unity cancels town hall over reported death threats | The Verge

Unity has changed its pricing model and developers are pissed off | The Verge

Toyota chooses Unity for next-generation interface | Unity

Credits:
Decoder is a production of The Verge and part of the Vox Media Podcast Network.
Our producers are Kate Cox and Nick Statt. Our editor is Ursa Wright.
The Decoder music is by Breakmaster Cylinder.
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