Unreal just changed their licensing model, it's now free up until a gross revenue of $1mil, after that it's the usual 5%.
https://unrealengine.com/en-US/faq/

BOI I'M FUCKING PUMPED.

those are some shitty terms though if you break the $1mil mark.

https://unrealengine.com/en-US/...

Now it doesn't count your revenue per quarter, instead it eats your pie whole life if you reach million. But I assume it's no problem for those who really climb to such financial heights and maintain franchises/other stuff in wealth.

@C0D4 What exactly do you mean? I just read them and couldn't find anything.

@Marl3x 5% of all Gross Revenue regardless of its source. Pretty much sums it up.

@C0D4 Ah, ok, but tbh I still find that fair. Because who tf cares after I have a mil :P
Especially because I'm pretty sure I will never reach that.

@C0D4 Only if the gross income is somehow related to the product you created with the engine (definition of product is at the end), and there are exceptions if the gross income is not related to the game itself, but the brand (e.g. companion books should be royalty free, but I find the licence a bit ambiguous there, as the wording could even mean the opposite here).

Also no royalties are required if gross sales drop below 10,000$/quarter.

@p100sch No, the first 1million are royalty free (so they are deducted from the total gross income):

<quote>
However, no royalty is owed on the following forms of revenue:
1. The first $1,000,000 in lifetime gross revenue for each Product;
2. Gross revenue attributable to a Product from a calendar quarter during which the gross revenue for such Product is less than $10,000;
3. The first $5,000,000 in gross revenue for each Product from the Oculus Store;
</quote>

In the FAQ they even say:
<quote>
In other words, the first $50k of royalties that you would have otherwise owed are on us!
</quote>

@sbiewald Yep, I just looked that up as well.

1. Make Indie game 1 using Unreal 5

2. Publish on steam. No microtransactions, just upfront $10-20 cost.

3. Generate $800k in revenue

4. Add permanent 50-75% discount to game

5. As you approach $990k, make the game free, publish code and assets on github, publish good documentation -- see what modders can do with it.

6. Gamers become fans of your studio for being nice to the community

7. Make Indie game 2 using Unreal 6.

If you're super successful... just split your company into many subsidiaries, each milking exactly $990k out of each product they publish, before throwing it into creative commons.

Somebody stop @bittersweet , he has become too powerful!

@bittersweet if its per product you wont even need subsidiaries.

@eval But I want subsidiaries, because it sounds cool.