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Unity Software CEO John Riccitiello speaks onstage during TechCrunch Disrupt SF 2018 in San Francisco on Sept. 5, 2018. Steve Jennings | TechCrunch | Getty Images
John Riccitiello, the CEO of Unity, a prominent gaming software company, is retiring following a contentious pricing alteration that drew widespread dissatisfaction among developers.
After nine years at the helm of Unity, Riccitiello is relinquishing his role as CEO and chairman, as well as stepping down from the company's board.
James Whitehurst, the former CEO of Red Hat, will take over as Unity's interim CEO. Roelof Botha, the lead independent director of Unity's Board and a representative of Sequoia Capital, will assume the position of company chairman.
Unity has announced plans to initiate the search for a permanent CEO, and Riccitiello will continue to provide advisory support to ensure a smooth transition.
In September, Unity introduced a pricing adjustment that garnered significant backlash from developers who rely on the company's technology for game development. A consortium of game developers publicly criticized the change, asserting that it posed a threat to developers of all sizes and had been implemented without industry consultation.
Unity eventually modified its pricing update in response to developer discontent, acknowledging the confusion it had caused and apologizing for it. The company pledged to engage with its team, community, customers, and partners and make changes to the policy accordingly.
Unity went public in 2020 and boasted a valuation of $17 billion following its first day of trading. The company's market capitalization currently stands at slightly over $11 billion, having experienced a decline in its stock price along with the broader tech sector in 2022.
In response to his retirement, John Riccitiello expressed gratitude for the opportunity to lead Unity for nearly a decade and serve the company's various stakeholders. He expressed his eagerness to continue supporting Unity during its transition and in its future endeavors.
Unity's shares experienced a 1.5% decline, closing at $29.70 at the end of the market day on Monday.
