Unreal Engine’s New Pricing Model Won’t Affect The Video Game Industry

Epic has revealed its new pricing for Unreal Engine – and nothing is changing for video games.

As reported by Video Games Chronicle, Unreal’s new pricing model is really for all the other companies and industries using their engine outside of video games. This pricing change was long overdue, as well, because Unreal was not charging all of these other companies anything until now.

So the way it works is Unreal will start charging users outside the video game industry when they start making $ 1 million in revenue per use. Unreal will charge such companies $ 1,850 per ‘seat’, AKA, for each employee in said company who uses the engine.

If you were wondering what uses Unreal could have outside of video games, it’s actually a lot more than graphics for movies and shows. Unreal Engine can also be used in non-video game virtual reality, and by extension, augmented reality. But on a broader level, Unreal is useful in the production pipeline for the architecture and automotive industry, for their visualizations of upcoming products. In fact, any product visualization could make use of Unreal, and for that matter, interactive exhibits and simulations could also make use of the technology.

As Epic Games promised, there are no changes for the game industry’s pricing model. Indies and small companies in particular won’t have to pay Epic royalties for a while, and possibly ever. Video game developers only start paying when they make $ 1 million in revenue, and will then have to pay out 5 % in royalties.

This will definitely bring huge relief for developers, but the story here really seems to be about Epic Games themselves. While they continue to pursue lawsuits with Apple and Google, and see new opportunities after getting a huge investment for Fortnite from Disney, Epic is finally tying up any remaining loose ends.

Epic Games was not exempt from the wave of layoffs the video game industry experienced. In September of last year, they announced they would let go of 16 % of their employees, as well as selling off Bandcamp and Super Awesome. One cannot help but wonder, if Epic had started charging these companies for their non-video game applications of Unreal Engine earlier, if they could have averted most, if not all of these layoffs. Bandcamp in particular is a popular company offering a much needed service, and Epic’s moves put them in a bad situation.

Hopefully, Epic management is more mindful of the consequences of their actions, and secures every action needed to ensure their business remains successful, to make it a viable business for their employees to make a living.