Epic Games Announces Price Adjustment for Unreal Engine for Non-Gaming Development

Epic Games

During a presentation at Unreal Fest 2023, Epic Game CEO Tim Sweeney made an important announcement concerning Unreal Engine’s pricing structure for developers operating in industries beyond gaming. The news, initially shared on social media by Fortnite Creative developer ImmatureGamerX and reported by Game World Observer, revealed that starting next year, non-gaming sectors will have access to Unreal Engine exclusively through a seat-based enterprise software licensing model.

Epic Games Announces Price Adjustment for Unreal Engine

Sweeney clarified that this new licensing model aims to strike a balance in terms of pricing, aligning it with industry standards like Maya and Photoshop. While the specific terms of this change have yet to be unveiled, Sweeney emphasized that this announcement was made in the spirit of transparency. He explained that this pricing shift is essential to reestablish engine revenue and direct it towards the teams contributing to various industries.

This decision was prompted by Epic Game realization of a pressing financial challenge that required swift resolution, which included the recent layoff of approximately 830 employees. Sweeney assured stakeholders that the entire company is actively engaged in reevaluating its priorities and team allocation to better meet the needs of its diverse user base.

In response to recent discussions surrounding engine royalties, particularly in light of the Unity controversy, Sweeney clarified Epic Games’s stance. He noted that their primary focus has been on exploring ways to lower their existing 5% revenue share model. While recent discussions have concluded with the decision to maintain the current model due to immediate financial needs, Sweeney left room for potential future adjustments, emphasizing that this stance might evolve over time.

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