Is Unreal Engine Free for Commercial Use?
The short answer is yes, Unreal Engine is free to use for creating linear content, custom projects, and internal projects. However, there are some conditions and fees associated with commercial use.
Under the Standard EULA
Under the standard End User License Agreement (EULA), Unreal Engine is free to use for learning, internal projects, and linear content (such as films and television shows). This means that students, hobbyists, and small-scale creators can use Unreal Engine without paying any fees.
Commercial Projects
For commercial projects, including custom projects and game development, Unreal Engine requires a 5% royalty on gross revenue earned over $1 million per year. This means that if your game earns over $1 million in revenue, you will need to pay 5% of that amount to Epic Games, the developers of Unreal Engine.
How the 5% Royalty Fee Works
The 5% royalty fee is based on the gross revenue earned by your game, which includes sales, in-app purchases, and any other revenue generated by your game. This means that you will need to report your revenue accurately and pay the royalty fee on a quarterly basis.
Waived for Games Published on the Epic Games Store
One notable exception to the 5% royalty fee is for games published on the Epic Games Store. For games published on the Epic Games Store, the 5% royalty fee is waived, meaning that you will not need to pay any fees on your gross revenue.
Comparison with Other Game Engines
To put this in perspective, Unity, another popular game engine, also has a similar royalty structure. For Unity, the royalty fee is 5% of gross revenue earned over $100,000 per product per year. This means that Unreal Engine’s royalty fee is more favorable for games that earn over $1 million per year.
Conclusion
In conclusion, Unreal Engine is free to use for learning, internal projects, and linear content, but commercial use requires a 5% royalty fee on gross revenue earned over $1 million per year. While this may seem restrictive, it’s worth noting that Unreal Engine is a powerful game engine with a wide range of features and tools, making it a popular choice for many game developers. Additionally, the waived royalty fee for games published on the Epic Games Store is a significant benefit for many developers.
Frequently Asked Questions
- What is the standard EULA for Unreal Engine?
The standard EULA for Unreal Engine allows for free use for learning, internal projects, and linear content. - What is the 5% royalty fee based on?
The 5% royalty fee is based on gross revenue earned by your game. - How do I report my revenue and pay the royalty fee?
You will need to report your revenue accurately and pay the royalty fee on a quarterly basis. - Is the 5% royalty fee waived for all games published on the Epic Games Store?
No, the 5% royalty fee is waived only for games published on the Epic Games Store. - How does Unreal Engine’s royalty structure compare to Unity’s?
Unreal Engine’s royalty structure is more favorable for games that earn over $1 million per year compared to Unity’s royalty structure.
Conclusion
Unreal Engine is a powerful game engine with a wide range of features and tools. While there are conditions and fees associated with commercial use, the standard EULA allows for free use for learning, internal projects, and linear content. With a 5% royalty fee on gross revenue earned over $1 million per year, Unreal Engine is a viable option for many game developers. Additionally, the waived royalty fee for games published on the Epic Games Store is a significant benefit for many developers.