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A software CEO spotted a golden opportunity to squeeze more money from his payin...

 7 months ago
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A software CEO spotted a golden opportunity to squeeze more money from his paying customers. Now he’s out after the idea blew up in his face

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AI's software revolution: How Google, Microsoft, & Apple are ushering in an new era

Three of the biggest tech companies in the world, Apple (AAPL), Google-parent Alphabet (GOOGL, GOOG), and Microsoft (MSFT), are finding new ways to deliver artificial intelligence both at the workplace and at home. Yahoo Finance Senior Tech Editor Dan Howley breaks down how the latest technologies from the three companies are helping to bring AI to the masses. For more from this episode of NEXT: How Microsoft's AI-based Copilot is going to be 'everywhere that you need it' AI stocks: Why the 'godfather' & the 'wildcard' are analysts' top picks AI & the software revolution: What investors need to know (full episode)

Christiaan Hetzner
Tue, October 10, 2023 at 11:00 PM GMT+9·4 min read

Note to C-suite execs: Squeezing every last incremental dollar of profit for your shareholders can be a recipe for disaster that ends in your unceremonious departure. John Riccitiello found that out the hard way when he "retired" with immediate effect as chairman and CEO of a stock-listed company called Unity Technologies after spotting what he thought was a golden opportunity to make bank off his paying customers.

His explosive change in prices last month unleashed a torrent of f-bomb-spiked criticism from clients, many of whom were sent fleeing into the all-too-welcoming arms of Unity’s rivals. It marks a cautionary tale of how to shatter years spent building up trust and goodwill essentially overnight.

In a statement on Monday, the software developer managed to announce an emergency change at the very top of the company's leadership without so much as once explaining why Riccitiello retired so abruptly. After nearly a decade at the helm, his departure leaves the board scrounging for a new chief executive.

“Unity would not be where it is today without the impact of his contributions,” new chairman Roelof Botha said of his predecessor, while reaffirming to shareholders that the company's annual targets would not change.

Similar to the Unreal Engine developed by Fortnite publisher Epic, Unity provides the underlying backbone that enables video games to work at a basic level—everything from graphical lighting effects to the technology behind the physics of movement.

No game can function without one, but they are typically not seen as a unique selling point, and developing them yourself is prohibitively expensive. Even major publishers that once developed their own proprietary engines, such as The Witcher 3’s CD Projekt Red, have since abandoned them in favor of some form of licensing deal.

This frees up studios to focus on the more creative part of the development that can differentiate their product from the competition, such as a compelling story, interesting characters, and innovative gameplay.

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