Epic Implements Annual Subscription Fees for Non-Game Developer Unreal Engine Users

Fojap - Epic Games has announced a new plan for the pricing structure of Unreal Engine, following up on changes they unveiled last year. In the latest announcement, the developer of Fortnite has set an annual subscription fee of $1,850 for users outside the gaming industry. The concept of "per seat" here refers to individual users or entities utilizing the Unreal Engine software. These changes will start to take effect with the release of Unreal Engine 5.4 scheduled for late April.

While Unreal Engine has traditionally been used as a game development tool, its usage has been expanding across various industries. Therefore, this new pricing structure applies to users beyond the gaming industry. Companies focusing on creating linear content, such as TV shows and films, will also have to pay an annual subscription fee of $1,850.

Similarly, organizations developing infotainment platforms for cars or immersive experiences, such as attractions in amusement parks, will also incur the same fee. Epic claims that many of these users previously did not provide significant revenue to the company, considering their end products do not always generate royalties, as disclosed by Sweeney last year.

The annual subscription fee provides users access to the Unreal Engine itself, along with real-time visualization tool Twinmotion and 3D modeling software RealityCapture. However, users also have the option to purchase separate licenses for each product. Twinmotion will be priced at $445 per year, while RealityCapture will have an annual subscription fee of $1,250.

However, there are some exceptions to this pricing structure. Companies with annual gross revenue of less than $1 million will not be subject to subscription fees. The same applies to students, educators, and hobbyists using Unreal Engine for personal or educational purposes. Companies developing plugins for Unreal Engine can still use the software for free, but they will share revenue with Epic through a profit-sharing model.

Meanwhile, game developers, Epic's primary products, will continue to have free access to Unreal Engine. They only need to pay a royalty of five percent for software generating more than $1 million in gross revenue over its lifetime. Epic expanded the royalty-free payment threshold from $50,000 to $1 million in 2020.