Table of Contents

Is Unreal Engine Free to Sell Games? A Comprehensive Guide

Quick answer

This page answers Is Unreal Engine free to sell games? quickly.

Fast answer first. Then use the tabs or video for more detail.

Watch the video explanation below for a faster overview.
Game mechanics may change with updates or patches.
Use this block to get the short answer without scrolling the whole page.

Read the FAQ section if the article has one.
Use the table of contents to jump straight to the detailed section you need.
Watch the video first, then skim the article for specifics.

Yes, you absolutely can sell games made with Unreal Engine! However, the details around “free” require a bit more unpacking. While the engine itself is free to download and use for a wide variety of purposes, including commercial game development, a royalty system kicks in once your game achieves a certain level of financial success. Let’s dive into the specifics and clear up any confusion.

Understanding the Unreal Engine Royalty Model

Unreal Engine operates under a royalty-based system. This means you can use the engine without upfront costs, but once your game’s lifetime gross revenue exceeds $1 million USD, you’ll owe Epic Games a 5% royalty on subsequent gross revenue. Here’s a breakdown:

Free to Start: You can download and use Unreal Engine for free to learn, prototype, and even develop your entire game.
The $1 Million Threshold: Only when your game’s lifetime gross revenue surpasses $1 million USD does the royalty apply. This gives smaller developers a significant head start.
5% Royalty: After hitting the $1 million mark, you’ll pay Epic Games 5% of all gross revenue earned thereafter.
Gross Revenue Definition: This includes all revenue earned from sales, in-app purchases, DLC, and any other source directly tied to your game.
Epic Games Store Exemption: Revenue generated from sales on the Epic Games Store is excluded from the 5% royalty calculation. Epic essentially waives the Unreal Engine royalty for games sold through their own platform, making it an attractive option for developers.

Navigating the Publishing Process

Once your game is ready for release, you’ll need to follow a few steps:

Sign Up as a Publisher: Register as a publisher on the Unreal Engine website.
Publisher Portal: Use the Publisher Portal to submit your game for review.
Compliance and Review: Ensure your game complies with Epic’s guidelines and undergoes their review process.
Release Your Game: Once approved, you can release your game on your chosen platform(s).

Why This Model Benefits Developers

The Unreal Engine royalty model is designed to be mutually beneficial:

Lower Barrier to Entry: No upfront licensing fees make Unreal Engine accessible to indie developers and small studios with limited budgets.
Success-Based Payment: You only pay a royalty when your game becomes commercially successful.
Epic’s Incentive: This model incentivizes Epic Games to continuously improve Unreal Engine and provide excellent support, as their success is directly tied to yours.

Choosing Your Publishing Platform

Where you publish your game can significantly impact your revenue. Consider the following:

Epic Games Store: As mentioned, sales on the Epic Games Store are exempt from the Unreal Engine royalty. However, the store has its own fee structure (typically 12% of revenue).
Steam: A popular platform with a vast audience, but they also have a revenue share agreement.
Itch.io: A platform known for supporting indie developers with a flexible revenue sharing model.
Consoles (PlayStation, Xbox, Nintendo Switch): Each console has its own publishing requirements, fees, and revenue share agreements.
Mobile (iOS, Android): Mobile platforms also have their specific publishing processes and revenue splits.

Carefully evaluate the terms and conditions of each platform to determine the best fit for your game and financial goals. The resources from GamesLearningSociety.org can provide additional context on making informed decisions for game design and development.

Monetization Strategies

Beyond traditional game sales, consider other monetization options:

In-App Purchases (IAPs): Offer cosmetic items, power-ups, or other in-game content for purchase.
Downloadable Content (DLC): Release expansion packs or new content after the initial game launch.
Subscriptions: Offer a recurring subscription for access to exclusive content or features.
Advertising: Integrate non-intrusive ads into your game (more common on mobile platforms).

Diversifying your monetization strategy can help you generate more revenue and maximize your profits.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about using Unreal Engine for commercial game development:

1. Can I sell a game made with Unreal Engine and Marketplace assets?

Yes, you can sell a game that uses Marketplace assets, provided you adhere to the terms of the Unreal Engine EULA and the Marketplace license agreements. Ensure you have the proper licenses for all assets used in your game.

2. How much does it cost to publish a game on the Epic Games Store?

The submission fee per game on the Epic Games Store is $100, similar to Steam.

3. What is the revenue split on the Epic Games Store?

The revenue split on the Epic Games Store is 88%/12%, meaning you keep 88% of the revenue and Epic takes 12%.

4. Does Unreal Engine take a cut of in-app purchases?

The 5% royalty applies to gross revenue, which includes revenue from in-app purchases (IAPs). However, if the IAPs occur within a game sold on the Epic Games Store, the revenue from those purchases is excluded from the Unreal Engine royalty.

5. Is Unreal Engine 5 free?

Yes, Unreal Engine 5 is free to download and use under the same royalty model as previous versions.

6. Can I use Unreal Engine for free for non-commercial projects?

Absolutely. Unreal Engine is free to use for learning, personal projects, and internal development without any royalty obligations.

7. What happens if I don’t report my revenue to Epic Games?

Failure to report revenue and pay royalties can result in legal action and potential termination of your Unreal Engine license. Honesty and transparency are crucial.

8. Can I get banned from using Unreal Engine?

Yes, Epic Games can terminate your license if you violate the EULA or engage in unethical or illegal activities.

9. Can I make NSFW games with Unreal Engine?

Epic Games generally doesn’t police the content of Unreal Engine users, but your content must be legal and comply with all applicable laws and regulations.

10. Is it hard to learn Unreal Engine?

Unreal Engine has a learning curve, but the Blueprints Visual Scripting system makes it accessible to beginners. Numerous tutorials and resources are available online.

11. Does the 5% royalty apply to crowdfunding revenue?

Generally, if crowdfunding is used for development and contributes directly to the gross revenue after launch, the 5% royalty applies after the $1 million threshold is crossed. However, consult Epic’s official guidelines for specifics.

12. Can I sell games on multiple platforms without impacting the royalty?

Yes, you can sell your game on multiple platforms. The royalty is calculated on the combined gross revenue across all platforms, excluding the Epic Games Store.

13. What if my game never makes $1 million?

If your game’s lifetime gross revenue never reaches $1 million USD, you will never owe Epic Games any royalties.

14. Are there any alternatives to paying the 5% royalty?

Currently, there are no alternatives to the 5% royalty for commercial games that exceed the $1 million threshold.

15. Does Epic provide assistance with royalty reporting?

Epic Games provides tools and resources to help you track your revenue and report royalties accurately.

Conclusion

Unreal Engine offers a powerful and accessible platform for game development. The royalty model allows developers to start for free and only pay when they achieve significant commercial success. By understanding the terms of the EULA and making informed decisions about publishing and monetization, you can leverage Unreal Engine to create and sell amazing games. Remember to explore the Games Learning Society for more insights into game development practices and the broader gaming landscape.