Unity Software Inc. has unveiled a new payments tool designed to help video game developers bypass the commissions charged by mobile app stores, challenging the long-running dominance of Apple over in-app transactions.
The San Francisco-based company, which is the world’s most widely used engine for creating mobile games, powering a large share of the industry’s titles, announced on Wednesday, October 22, that the free product will allow game-makers to integrate a range of payment providers across mobile app stores, PCs, and the web, effectively sidestepping Apple’s App Store and Alphabet’s Google Play billing systems.
The alternative system was possible thanks to court decisions that forced Apple and Alphabet to permit developers to use alternative payment channels away from their stores.
Unity Chief Executive Officer Matt Bromberg reportedly said, “Being able to sell outside of the app store is a significant opportunity for our customers. It’s created more profitability, more control. It’s allowed developers to invest more in better content and more marketing to create more growth.”
With its new payments system, the company is hoping to capture a share of the $120 billion in global in-app purchases projected for this year, most of which come from mobile games built on its platform.
Unity moves to free developers from platform fees
Apple and Google have charged developers as high as 30% on digital purchases made through their platforms for over a decade. While the tech giants defended the practice as necessary to maintain secure and seamless user experiences, game-makers and regulators, especially in Europe, have criticized it as anti-competitive.
In Europe, the Digital Markets Act (DMA) compels major platforms to open up their ecosystems to third-party billing systems. In August, Cryptopolitan reported that Alphabet made concessions to its app store in the bloc.
Epic Games, the creator of Fortnite, pioneered “web stores” that allow players to buy in-game items directly from publishers after winning its legal battles against Apple and Alphabet, which forced them to loosen the grip of their monopoly on their app stores.
Following the ruling of the Epic Games lawsuit, Apple made some concessions and updated its rules in May to let developers include links to external payment portals, though it continues to impose conditions and compliance requirements.
Billions at stake in the mobile-gaming economy
Analysts project that Apple and Alphabet may see as much as $4.1 billion in annual revenue shift from them collectively to developers as a result of alternative payment methods. The recent development, while still limited, marks a new era of independence for developers who are now freed from platform tolls.
Now, they can reinvest in creativity, user engagement, and marketing rather than ceding margins to intermediaries.
Unity went through a major restructuring last year, with record layoffs and management changes in what were termed cost-cutting efforts, and is reportedly seeking new growth paths.
Expanding into payments is one of those paths and could help diversify revenue beyond its core engine business and advertising network.
Bromberg said Unity downloads were up 50% in the second quarter of this year from the first, following the 2024 release of Unity 6.
For Apple and Google, the emergence of payment alternatives could threaten a lucrative source of income at a time when regulatory scrutiny over their market power is on the rise.
If you're reading this, you’re already ahead. Stay there with our newsletter.
