Epic Games, creator of the popular game Fortnite, is implementing a new pricing structure for its Unreal Engine. This shift will affect non-game developers who utilize the engine for projects like film, television, and interactive experiences.
Subscription Replaces Royalty Model:
Previously, non-game developers paid a 5% royalty on projects exceeding $1 million in revenue. This system will be replaced with an annual subscription of $1,850 per seat (per user). This pricing model goes into effect with the release of Unreal Engine version 5.4 in late April.
Who is Impacted?
The new subscription fee applies to non-game developers working on projects like:
- Film and television shows
- Infotainment systems in vehicles
- Theme park rides (not sold directly to customers)
Exemptions and Additional Benefits:
- Companies earning less than $1 million annually
- Students, educators, and hobbyists
- Developers creating plug-ins for the Unreal Engine Marketplace (revenue share model still applies)
The $1,850 fee includes access to:
- Unreal Engine
- Twinmotion (real-time visualization tool)
- RealityCapture (photogrammetry software)
Epic plans to integrate Twinmotion and RealityCapture directly into the Unreal Engine by the end of 2025. These tools will also be available for separate purchase.
Following the Competition (Cautiously):
The new system arrived shortly after competitor Unity attempted (and later abandoned) a pay-per-download pricing model. Similar to Unity, Epic clarifies that the subscription fee only applies to projects developed with the latest engine version (Unreal Engine 5.4). Developers using version 5.3 or earlier can continue with the previous royalty model until they upgrade.
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