Is Unreal Engine 5 a Free Software? Unveiling the Truth Behind Epic Games’ Offering
Yes, Unreal Engine 5 (UE5) is essentially free to download and use for a wide range of purposes. However, like most seemingly “free” things in life, there are some nuances and caveats to be aware of, particularly when it comes to commercial use, especially in the gaming world. Epic Games offers UE5 with full features and source code access, but a 5% royalty is applied to gross revenue exceeding $1 million USD from games and other interactive products built with the engine. This royalty model makes UE5 incredibly accessible for indie developers, hobbyists, and students, while ensuring Epic benefits from the commercial success of larger projects. Outside the realm of game development, recent licensing changes have altered the landscape, bringing in considerations for non-game development professionals.
Understanding the Unreal Engine 5 Free Model
The beauty of Epic’s approach lies in its tiered system. For those just starting out, experimenting, or creating non-commercial projects, UE5 is entirely free. This empowers aspiring developers, students, and hobbyists to learn the engine, prototype ideas, and build portfolios without any upfront costs. The vast library of resources, tutorials, and the active community further enhance this accessibility.
Royalty System Explained
The 5% royalty only kicks in once a project’s gross revenue surpasses $1 million USD. This threshold is quite significant, providing ample runway for developers to build, market, and sell their games before owing any royalties to Epic. The royalty is calculated quarterly, meaning you only pay if your game earns over $1 million in a given quarter. This avoids penalizing developers who might have a single month of high sales followed by lower revenue periods.
It is important to note what counts towards the $1 million threshold. Gross revenue includes all income generated from the project, including sales, in-app purchases, DLCs, and even crowdfunding campaigns.
Recent Licensing Changes for Non-Game Development
While UE5 remains free for game development up to the royalty threshold, Epic Games introduced a seat-based licensing model in 2024 for non-game development activities. This affects studios and professionals using Unreal Engine for applications like VFX, animation, architectural visualization, and simulations. The exact pricing varies, so it is important to check the Epic Games website for the most current information, but this marks a significant shift in how the engine is licensed outside the interactive entertainment sector. The details of this licensing shift can be found on the Unreal Engine website.
This decision was made to better support the continued development of UE5 and to align its pricing with other industry-standard professional tools. However, it is important to remember that the engine remains free for students and for smaller indie productions below a certain revenue threshold, ensuring it still accessible for people to learn the basics.
Unreal Engine 5: Free for Education and Personal Use
The “free-to-use” aspect of Unreal Engine 5 extends to educational institutions, students, and individuals engaged in personal projects. This enables students to acquire valuable skills, create impressive portfolios, and prepares them for careers in game development and other fields. It also allows hobbyists and enthusiasts to explore their creativity and bring their ideas to life without any financial barriers.
Supporting the Future of Game Development
By making the engine free for educational purposes, Epic Games actively invests in the future of the game development industry. They encourage the creation of new talent and promote innovation by lowering the barrier to entry for aspiring developers. As a result, the engine has become a staple in game development courses worldwide. This aligns well with the mission of organizations such as the Games Learning Society, who strive to create an impact in the field of gaming and learning, bridging the gap between educators and designers using modern learning methods.
Frequently Asked Questions (FAQs) about Unreal Engine 5’s Pricing
Here are some common questions about Unreal Engine 5’s pricing model, providing further clarity on its usage rights and commercial implications:
1. Can I download and use Unreal Engine 5 for free?
Yes, Unreal Engine 5 is free to download and use. You gain access to all its tools, features, and full C++ source code.
2. When do I start paying royalties for using Unreal Engine 5?
A 5% royalty is required only when your game or interactive product earns over $1 million USD in gross revenue.
3. Is Unreal Engine 5 free for personal use?
Yes, Unreal Engine is free for creating personal projects, custom content, and internal prototypes.
4. Is Unreal Engine 5 free for students and educators?
Yes, it is free for students and educators to use for learning, teaching, and research purposes.
5. What if I use Unreal Engine 5 for a non-game project, like animation or visualization?
As of 2024, Unreal Engine 5 uses a seat-based enterprise software licensing model for non-game projects. Studios using Unreal Engine for non-game works, such as VFX, animation and visualization, will be charged a on a “seat-based enterprise software licensing model” from 2024. The software will remain free for students, and for indie productions below a revenue thredhold.
6. Is Unreal Engine 5 no longer free in 2024?
Unreal Engine 5 is no longer free for non-game developers starting in 2024, potentially impacting accessibility and affordability for those outside the gaming industry.
7. Does the $1 million threshold apply to each game individually?
Yes, the $1 million threshold applies to each individual game or product built with Unreal Engine 5. If you have multiple games, royalties are only applicable if each game individually exceeds the $1 million revenue threshold.
8. How does the royalty reporting process work?
The reporting process is outlined on the Unreal Engine website. You’ll need to register an account, track your revenue accurately, and submit royalty reports quarterly if your game exceeds the $1 million threshold.
9. What if I use marketplace assets in my Unreal Engine 5 game?
You are allowed to release a game to the public that uses Marketplace assets under the terms of the EULA.
10. Can I publish and sell a game I made in Unreal Engine 5 for free?
Yes, you can publish and sell your game, but you’ll need to adhere to the royalty policy if your game generates over $1 million USD.
11. Are there any hidden costs associated with using Unreal Engine 5?
There are no hidden costs associated with using Unreal Engine 5 itself. However, if you decide to use third-party assets from the Unreal Engine Marketplace, you will have to pay for those assets, and if you make over $1 million, you have to pay the royalty.
12. Does Unreal Engine own my game if I use their engine?
No, Epic owns the Unreal Engine, but anything you build on top of it is yours.
13. Which is better for beginners, Unreal Engine 5 or Unity, considering the pricing?
If you’re a complete beginner at game development, Unity may be the more suitable choice. Unreal Engine does require a more extensive knowledge base to work within its systems. Unity offers an intuitive design and uses the C# programming language, making it easy to grasp and enjoyable to use.
14. Can I make a game with Unreal Engine 5 without any coding knowledge?
Short Answer: No; you can’t develop a game without some programming. While it is true unreal engine comes with a graphical scripting language(blueprints); at some level you will need to understand some programming concepts.
15. Is it safe to use Unreal Engine 5 for my game development projects?
As experts in game security ,we know that it’s without a doubt that the Unreal Engine is one of the best game engines in the market.
The Verdict: Accessibility and Commercial Considerations
Unreal Engine 5’s pricing model is exceptionally generous, particularly for independent developers, students, and hobbyists. Its free-to-use approach, coupled with the substantial $1 million revenue threshold, makes it an accessible and attractive option for those starting in the game development industry. However, it’s crucial to understand the royalty terms and the updated licensing model for non-game projects to avoid any surprises as your project grows and evolves.
By offering such a comprehensive toolset at no upfront cost, Epic Games fosters innovation and empowers creators to bring their visions to life. Whether you’re building a small indie game or a large-scale AAA title, Unreal Engine 5 provides the resources and flexibility to achieve your goals, as well as provides students the ability to get familiar with the toolsets, a goal also shared by GamesLearningSociety.org.