Yeah, inflation rate is high, so central banks are trying to counteract that by basically slowing down the economy, so that our normally scheduled inflation countermeasures kick in appropriately. Well, and the usual way to slow down the economy is to make it more costly to loan money, i.e. increase interest rates. Which means investors can’t just pump money into any company anymore, they want that money to actually pay out to cover those interest rates. And that means companies need to actually be profitable to get money to finance their operation.
This would make sense if Unity increased their fees, but it doesn’t make sense to invent a new revenue stream based on a metric you can’t even accurately measure. That’s profit-seeking.
I’m guessing it’s their last ditch effort to remain in good solvency. A board member making trades before a big change is almost always a sign of the rats abandoning the ship.
Why can’t they remain solvent by adjusting their fee schedule though? It’s the same boilerplate terms other engines seem to make ends meet with. There are many different ways to correct course in the scenario presented, but the action taken doesn’t suggest that’s the scenario they’re in. Corporate profit-seeking is the primary driver of the inflation in the global economy - I think the above commenter has put the cart before the horse.
Why can’t they remain solvent by adjusting their fee schedule though?
Likely they’ve been remaining solvent through private equity, which has probably dried up. Their fees were probably just enough to entice further investment, but most of these companies operate on paying loans with new loans until they can become profitable in the long term.
Usually when a price hike that doesn’t make sense happens, it’s because they’ve failed to get a new injection of capital to remain in solvency. So they have to speed up the fee schedule to make their payments to the investors.
Corporate profit-seeking is the primary driver of the inflation in the global economy - I think the above commenter has put the cart before the horse.
It’s a public IPO, they don’t have to be profitable, they just have to appear as if they will be profitable to increase share price. This kind of hike is not something that a public IPO would do as it will assuredly drop stock price, which is illegal unless there is no alternative.
Without providing any basis for their charges, and without a way for devs to independently validate them, I can’t see how the charges could even be considered valid legally, let alone pull them out of insolvency. A dev fee per fingerprinted installation doesn’t have any precedent in the SaaS space to my knowledge. I don’t think it would be illegal for an IPO to do this if it was truly meant to increase longterm profitability - e.g. price speculation that’s happened today could similarly happen for any reason at any time on any stock. But the point is it won’t work without a monopoly they don’t have - they’ll have to go back on it (at least with regard to games already released), or end up in costly litigation
Without providing any basis for their charges, and without a way for devs to independently validate them, I can’t see how the charges could even be considered valid legally
Ehhh, it very well might not be. But service providers have an awful lot of control of their platforms and who and how they allow access to it, and for how much. A lot of the interpretations in IP courts when it comes to the digital service seem to be about 5 years behind the actual industry. Add on the fact that a lot of the people running the IP courts barely know how to operate a computer, let alone the ins and outs of digital media and we usually get an environment that’s skewed towards the industry.
A dev fee per fingerprinted installation doesn’t have any precedent in the SaaS space to my knowledge.
I think it would be interpreted pretty close to what reddit did with their API access. Technically it’s just a different type of service fee, and it’s backed by a pretty simple logic of offsetting the cost of the involved traffic.
I don’t think it would be illegal for an IPO to do this if it was truly meant to increase longterm profitability - e.g. price speculation that’s happened today could similarly happen for any reason at any time on any stock.
The main sticking point would be that you would have to prove that there is a logical path to long-term profitability that surpasses or offsets the resulting devaluation of pursuing a completely different profit model.
I think it really depends on how big the devaluation will be at the end of everything, and if they loose large clients specify their reasons for leaving.
It’s all pretty complicated, but Im still guessing theyre having solvency issues, just by looking at their IPO price since the last quarter of 2021 they’ve lost about 50% of their value without any real signs of recovery.
It’s not really an intricacy of IP law though, it’s kinda one step away from a contract saying “I get to write a blank cheque from you to me. Don’t worry, I’ll put in the right amount you owe, and if you don’t think I did just tell me and we can talk about it. I reserve the right to say no though”
To legally charge the dev, an invoice has to be raised. That’s a legal document, there’s an item on it, a quantity, and a price. If the details of the invoice cannot be verified by either party, it is invalid. About as fundamental a principle in contract law as you can get, I imagine.
The way it’s different to reddit is that Unity wants to charge per installation on unique hardware. That is, if you buy a license for the game, and install it on your PC as well as your Steam deck, then the devs need to pay 2x install fees.
It is in the fact that the game was built on their platform using their IP. They may own the game they created, but they don’t own the right to distribution, that’s a service.
legally charge the dev, an invoice has to be raised. That’s a legal document, there’s an item on it, a quantity, and a price.
That’s if you are doing product business, the service industry has more flexibility in their terms of service and how much they can charge for it. The option is typically to discontinue the service or to pay for continued service.
The way it’s different to reddit is that Unity wants to charge per installation on unique hardware. That is, if you buy a license for the game, and install it on your PC as well as your Steam deck, then the devs need to pay 2x install fees.
Right, and as a service they will claim that additional downloads are an responsible for the loss of additional revenue, one they wish to offset to the customer who created it.
I’m not saying that this is a good thing, just explaining that the service industry has a lot leverage in court.
And it’s most costly to increase interest rates not because those directly affect the investors, but because those interest rates affect the borrowers since the borrowers will need to make more and more money to be able to pay back the initial injection + interest.
If borrowers don’t think they can pay back, then they probably won’t borrow in the first place. If they do borrow but don’t make enough to pay back those loans + interest, then the investor loses out.
And if borrowers don’t borrow in the first place, then investors sit on their money when they could theoretically inject it into other businesses so they can earn on what they own, and not just let their assets stagnate (or decay). To investors, this might also be perceived as a loss.
Borrowing isn’t always the active part. When a company is listed on the Stock Exchange, then investors play the active role by buying or selling their stock.
Most investors don’t just have tons of money laying around. They have property, which they can list as security when borrowing money from banks. And then they lend that borrowed money to companies seeking(/allowing) investment. That means:
a) With high interest rates, investors do have a need for their lent money to pay out, too. As do the banks, because they borrowed it from the central bank.
b) Ultimately, lots of money will be given back to the central bank. The money is effectively removed from the economy then. If you’ve ever heard that inflation comes from too much money being in circulation, that’s how that ties back in.
I’m no expert either, though. I’m just summarizing what makes sense to me and what I’ve learnt from making this post a few weeks ago: https://feddit.de/post/2514573
Oh I see, so it’s like a merry-go-round, and everyone wants to have their money returned with more than they borrowed so that not only can they have some left over for themselves, but to also pay back those they themselves borrowed money from in order to lend in the first place. Recursive lending/borrowing up until the central banks, like you said.
Risky stuff. If any single entity along that lending/borrowing chain/network flops, it can send shockwaves to everyone else, all the way back to the central bank.
Yeah, inflation rate is high, so central banks are trying to counteract that by basically slowing down the economy, so that our normally scheduled inflation countermeasures kick in appropriately. Well, and the usual way to slow down the economy is to make it more costly to loan money, i.e. increase interest rates. Which means investors can’t just pump money into any company anymore, they want that money to actually pay out to cover those interest rates. And that means companies need to actually be profitable to get money to finance their operation.
This would make sense if Unity increased their fees, but it doesn’t make sense to invent a new revenue stream based on a metric you can’t even accurately measure. That’s profit-seeking.
I’m guessing it’s their last ditch effort to remain in good solvency. A board member making trades before a big change is almost always a sign of the rats abandoning the ship.
Why can’t they remain solvent by adjusting their fee schedule though? It’s the same boilerplate terms other engines seem to make ends meet with. There are many different ways to correct course in the scenario presented, but the action taken doesn’t suggest that’s the scenario they’re in. Corporate profit-seeking is the primary driver of the inflation in the global economy - I think the above commenter has put the cart before the horse.
Likely they’ve been remaining solvent through private equity, which has probably dried up. Their fees were probably just enough to entice further investment, but most of these companies operate on paying loans with new loans until they can become profitable in the long term.
Usually when a price hike that doesn’t make sense happens, it’s because they’ve failed to get a new injection of capital to remain in solvency. So they have to speed up the fee schedule to make their payments to the investors.
It’s a public IPO, they don’t have to be profitable, they just have to appear as if they will be profitable to increase share price. This kind of hike is not something that a public IPO would do as it will assuredly drop stock price, which is illegal unless there is no alternative.
Without providing any basis for their charges, and without a way for devs to independently validate them, I can’t see how the charges could even be considered valid legally, let alone pull them out of insolvency. A dev fee per fingerprinted installation doesn’t have any precedent in the SaaS space to my knowledge. I don’t think it would be illegal for an IPO to do this if it was truly meant to increase longterm profitability - e.g. price speculation that’s happened today could similarly happen for any reason at any time on any stock. But the point is it won’t work without a monopoly they don’t have - they’ll have to go back on it (at least with regard to games already released), or end up in costly litigation
Ehhh, it very well might not be. But service providers have an awful lot of control of their platforms and who and how they allow access to it, and for how much. A lot of the interpretations in IP courts when it comes to the digital service seem to be about 5 years behind the actual industry. Add on the fact that a lot of the people running the IP courts barely know how to operate a computer, let alone the ins and outs of digital media and we usually get an environment that’s skewed towards the industry.
I think it would be interpreted pretty close to what reddit did with their API access. Technically it’s just a different type of service fee, and it’s backed by a pretty simple logic of offsetting the cost of the involved traffic.
The main sticking point would be that you would have to prove that there is a logical path to long-term profitability that surpasses or offsets the resulting devaluation of pursuing a completely different profit model.
I think it really depends on how big the devaluation will be at the end of everything, and if they loose large clients specify their reasons for leaving.
It’s all pretty complicated, but Im still guessing theyre having solvency issues, just by looking at their IPO price since the last quarter of 2021 they’ve lost about 50% of their value without any real signs of recovery.
It’s not really an intricacy of IP law though, it’s kinda one step away from a contract saying “I get to write a blank cheque from you to me. Don’t worry, I’ll put in the right amount you owe, and if you don’t think I did just tell me and we can talk about it. I reserve the right to say no though”
To legally charge the dev, an invoice has to be raised. That’s a legal document, there’s an item on it, a quantity, and a price. If the details of the invoice cannot be verified by either party, it is invalid. About as fundamental a principle in contract law as you can get, I imagine.
The way it’s different to reddit is that Unity wants to charge per installation on unique hardware. That is, if you buy a license for the game, and install it on your PC as well as your Steam deck, then the devs need to pay 2x install fees.
It is in the fact that the game was built on their platform using their IP. They may own the game they created, but they don’t own the right to distribution, that’s a service.
That’s if you are doing product business, the service industry has more flexibility in their terms of service and how much they can charge for it. The option is typically to discontinue the service or to pay for continued service.
Right, and as a service they will claim that additional downloads are an responsible for the loss of additional revenue, one they wish to offset to the customer who created it.
I’m not saying that this is a good thing, just explaining that the service industry has a lot leverage in court.
And it’s most costly to increase interest rates not because those directly affect the investors, but because those interest rates affect the borrowers since the borrowers will need to make more and more money to be able to pay back the initial injection + interest.
If borrowers don’t think they can pay back, then they probably won’t borrow in the first place. If they do borrow but don’t make enough to pay back those loans + interest, then the investor loses out.
And if borrowers don’t borrow in the first place, then investors sit on their money when they could theoretically inject it into other businesses so they can earn on what they own, and not just let their assets stagnate (or decay). To investors, this might also be perceived as a loss.
Do I have that right?
In principle, yes, although two things to note:
Borrowing isn’t always the active part. When a company is listed on the Stock Exchange, then investors play the active role by buying or selling their stock.
Most investors don’t just have tons of money laying around. They have property, which they can list as security when borrowing money from banks. And then they lend that borrowed money to companies seeking(/allowing) investment. That means:
a) With high interest rates, investors do have a need for their lent money to pay out, too. As do the banks, because they borrowed it from the central bank.
b) Ultimately, lots of money will be given back to the central bank. The money is effectively removed from the economy then. If you’ve ever heard that inflation comes from too much money being in circulation, that’s how that ties back in.
I’m no expert either, though. I’m just summarizing what makes sense to me and what I’ve learnt from making this post a few weeks ago: https://feddit.de/post/2514573
Oh I see, so it’s like a merry-go-round, and everyone wants to have their money returned with more than they borrowed so that not only can they have some left over for themselves, but to also pay back those they themselves borrowed money from in order to lend in the first place. Recursive lending/borrowing up until the central banks, like you said.
Risky stuff. If any single entity along that lending/borrowing chain/network flops, it can send shockwaves to everyone else, all the way back to the central bank.
Thanks for the 2 cents.