Unity Software

Unity Software demonstrates how keystone species can trigger trophic cascades through policy changes. The company's September 2023 announcement of runtime fees per-install sparked developer exodus, destroying trust and triggering 17% revenue decline to $1.81 billion in 2024. Like removing wolves from Yellowstone causing elk overpopulation and vegetation collapse, Unity's pricing change destabilized the entire game development ecosystem built around its engine. The crisis forced leadership change (CEO John Riccitiello out, Matt Bromberg in) and strategic portfolio reset, divesting non-core assets including Wētā FX tools. The 2025 recovery shows ecosystem healing: Q3 revenue hit $471 million (up 5% year-over-year), with Create Solutions ($152M) and Grow Solutions ($318M) both posting growth after years of decline. Unity 6 launch and Unity Vector (AI tools) represent recolonization—offering new capabilities to win back developers who fled to Unreal Engine and Godot. The fundamental tension mirrors myrmecochory (seed dispersal by ants): Unity's platform provides essential infrastructure for indie developers (free tier, asset store, tutorials) while extracting value through subscriptions and ad revenue. The company's 23% adjusted EBITDA margin in Q3 2025 shows the economic power of platform ecosystems—once developers build entire games in Unity, switching costs include rewriting code, retraining teams, and abandoning accumulated assets. However, the 2023 trust breach created permanent alternative pathways: Godot (open-source engine) grew 1000%+ after Unity's announcement, demonstrating how ecosystem disturbances create windows for competitor invasion. Unity's $151 million Q3 free cash flow suggests stabilization, but the company operates in a fundamentally changed landscape where developer loyalty requires continuous earned trust rather than assumed lock-in.