Releasing your game on the Epic Games Store will mean you'll only get 3.5% Unreal Engine royalties



Epic Games, known for the popular game 'Fortnite,' has announced that it will reduce game engine royalties from 5% to 3.5% when games developed with the company's game engine are released on the Epic Games Store. The royalty reduction is subject to conditions such as the game being distributed on the Epic Games Store from the first day of release.

Epic is trying to sweeten the deal to use Unreal Engine and the Epic Games Store - The Verge

https://www.theverge.com/2024/10/1/24258723/epic-games-store-unreal-engine-launch-everywhere-royalty

On October 2, 2024, the official Unreal Engine X (formerly Twitter) account announced, 'Under the recently announced 'Launch Everywhere with Epic,' starting January 1, 2025, if you release your game on the Epic Games Store simultaneously with other stores such as PC and Android, your Unreal Engine royalties will be reduced from 5% to 3.5%.'



Regarding the impact of the 1.5% difference, IT news site The Verge said, 'This royalty reduction applies to revenues across all media in which game titles are sold, so if a game developer's multi-platform game becomes a big hit, the royalty reduction could result in significant additional revenue.'

Epic Games, which is in fierce conflict withGoogle and Apple over the structure of their game and app distribution stores, has particularly criticized the 30% commission that the two companies' platforms charge developers, known as the 'Apple tax' and 'Google tax,' as being too high.

Epic Games plans to challenge Apple tax on web payments as 'undermining court orders' - GIGAZINE



On the other hand, the Epic Games Store operated by Epic Games has an '88:12' principle that keeps commission at a low 12% and returns 88% of revenue to developers. This is more advantageous for game developers than the 30% commission set by Steam, a major PC game distribution store.

There is also a program called ' Epic First Run ' that increases the distribution rate from 88% to 100% for exclusive distribution for six months after release.

However, there are some conditions to the incentives announced today: First, in order for game developers to qualify for the Unreal Engine royalty reductions, their games must be available on the Epic Games Store from day one of release.

You are not prohibited from selling your game on competing stores, but if you release your game on PC or Android and do not offer it on the Epic Games Store, your royalty will revert to 5%.



Epic Games is exempt from the simultaneous release requirement for iOS games due to the ' core technology fee ' that Apple imposes on apps distributed through third-party app stores.

The Verge said, 'Epic Games already waives Unreal Engine royalties on sales through the Epic Games Store, where Epic Games processes payments, so developers now have another perk when they offer their games on the Epic Games Store. This royalty reduction will also be attractive to developers who have lost faith in Unity due to its runtime fee, which is charged based on the number of installs.'

Unity announces withdrawal of 'Runtime Fee' fee system based on the number of installations - GIGAZINE

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