• by Colin Kirkland , March 12, 2024

Fortnite creator Epic Games is updating its pricing structure around Unreal Engine, the company’s video-game development tool.

While game developers can continue using the tool for free, non-game developers will soon be charged an annual subscription of $1,850 “per seat” to use Unreal Engine.

Epic, which teased the pricing change last year, is looking to make a profit from developers using its software for non-gaming purposes -- including the creation of TV shows and movies, infotainment systems in cars, architectural visualizations and immersive experiences not sold directly to individual users, like theme park rides -- so it can fund future development efforts.

“Unreal Engine will remain free to use for students, educators, hobbyists, and companies generating less than $1 million in annual gross revenue,” the company wrote in a blog post, explaining that the changes will not affect game developers, who will continue to pay a 5% royalty on products exceeding $1 million in lifetime gross revenue (the first $1 million generated from a game is exempt from royalties, as is revenue earned through the Epic Game Store).

Some non-game developers will be exempt from the new subscription charge, such as companies that earn less than $1 million in annual gross revenue, as well as students, educators and hobbyists. In addition, companies that make plug-ins for the Unreal Engine can continue to use the software for free.

Epic's new pricing model, which it says will only apply to games made with Unreal Engine 5.4 -- the latest version of its software -- follows a controversial pay-per-download pricing model put forth by a competitor named Unity, who rolled back the change after receiving widespread outrage from the gaming community.