Epic Games has announced a change in the licensing fee structure for the Unreal Engine when used for non-gaming purposes such as film production, TV shows, clips, or architectural visualizations, as previously announced last year.
Previously, Unreal Engine charged a 5% royalty fee on game revenues, with exceptions for the first $1 million. However, for non-gaming media where the engine’s integration is harder to track, the fee structure will now be based on a seat-based subscription model, priced at $1,850 per person per year. This subscription includes access to Unreal Engine, as well as two additional tools Twinmotion and RealityCapture, acquired by Epic.
This update will take effect in Unreal Engine version 5.4, set to release by the end of April 2024. Users sticking with version 5.3 onwards will not be subjected to this licensing fee.
Unreal Engine has been gaining popularity in the film industry, enabling the transition from physical set building to digital scene creation, projected on large screens behind actors. This shift allows for quicker scene alterations, saving time and production costs. Prominent examples of films and series utilizing this technique include The Mandalorian.
Source: Epic Games
TLDR: Epic Games modifies Unreal Engine licensing fees for non-gaming applications, switching from revenue-based royalties to a seat-based subscription model. This change will be effective from Unreal Engine version 5.4 onwards, offering users access to additional tools Twinmotion and RealityCapture. The engine’s application in film production has streamlined scene creation and led to notable cost and time savings.
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