Are you a game developer using Unreal Engine for your projects? Well, we have some exciting news for you! Epic Games has detailed its upcoming pricing changes for Unreal Engine, and it seems like they are keeping their promises to keep the situation the same for game developers.
During the Unreal Fest 2023 conference last year, Epic CEO Tim Sweeney announced that the company would start charging for the use of Unreal Engine outside of video game development. However, Sweeney promised at the time that this wouldn't change for game developers, and it has now been confirmed.
Currently, game developers can use Unreal Engine for free until a product they release earns $1 million in lifetime gross revenue, at which point Epic will start taking a 5% cut. This has been a great incentive for indie developers and smaller studios to create amazing games without worrying about upfront costs.
But Unreal Engine is not only used in the gaming industry. It has a variety of non-gaming applications, such as in manufacturing. Since many of these non-gaming uses don't result in video game royalties, Epic currently makes no money from these users. With the upcoming release of Unreal Engine 5.4 in late April, there are some changes on the horizon.
Developers working on video games will continue to have the same terms as before, meaning they can still use Unreal Engine for free for their first $1 million of revenue per product, followed by a 5% royalty. However, companies in non-game industries will now have to switch to a 'seat-based' licensing model if they generate over $1 million in annual gross revenue.
The annual cost for non-game industries will be $1,850 per 'seat', meaning companies will have to pay that amount every year for every employee using Unreal Engine. Epic stated, "If you're developing a non-game application that is licensed to third-party end users and relies on Unreal Engine code at runtime, then you will need to pay royalties just like game developers do."
Epic's decision to stick to its promise will be a relief for the development community, especially after the recent changes announced by Unity. Unity decided to start charging developers every time a game that uses its engine is installed, which caused frustration within the development community.
Despite Unity's subsequent apology and attempt to partially walk back these plans, many developers remain frustrated at the changes to the terms of using Unity. This makes Epic Games' commitment to game developers even more significant.
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