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Epic's New Royalty Policy Is Amazing For Indie Developers
Publisher Epic Games has announced a policy change to royalties for Unreal Engine, which will allow indie developers to make big savings. The game engine is one of the most widely used in the industry and has set the standard for game development software since it was first used in 1998 with the first-person shooter Unreal. The latest iteration, Unreal Engine 4, launched in 2014 and is the framework of games across a wide array of genres, including Batman: Arkham Asylum, Mortal Kombat X, and Borderlands 3.
The company recently showed off the upcoming Unreal Engine 5. Titled "Lumen in the Land of Nanite", the playable tech demo demonstrated just how impressive the latest engine is running on the PlayStation 5. Epic Games also gave out details about the launch of the product as well as the news that Fortnite will use Unreal Engine 5 in 2021.
Epic Games revealed the change as part of their marketing push after the PlayStation 5 tech demo for Unreal 5. Marketing manager Dana Cowley explained on Twitter that developers would only pay royalty fees for using the Unreal Engine when they earn $1 million from that specific product. Once they hit that milestone, studios begin to pay 5% royalties as normal but these payments can stop if earnings then fall below a $10,000 per quarter threshold. While the announcement only mentioned Unreal Engine 4, Cowley also clarified that these same terms would be in effect for Unreal Engine 5.
These changes make working with Unreal Engine a tantalizing prospect for indie developers in particular. Previously, they would have had to begin paying royalties once a game was earning in excess of $3,000 every quarter. The new terms effectively mean that studios can make savings of up to $50,000 in royalty payments before they hit the $1 million threshold. According to Cowley, the change is a way of giving independent studios extra breathing space and as a way to encourage more people to take up game development.
Epic Games has been doing a lot to improve their image in recent months. While there has been a lot of controversy surrounding the Epic Games Store, the company has continued to add free titles for players during the COVID-19 pandemic. The company has also regularly added additional features to the Epic Games Store to enhance the experience for users. However, perhaps the biggest announcement was the launch of a publishing arrangement. Those who sign up to have their games published by Epic Games will see all of their development costs covered by the publisher, with profits split 50/50. Combined with the changes made to the royalty program for Unreal Engine, it makes Epic Games a very tempting and lucrative option for developers.
