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I don’t think EPIC is profiting from 5% either, every popular engine is in the same situation now.
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You’ll be surprised - it only takes a handful of surprise hits at 5% to make up for the cost of opening up the engine to - Ark made $10 million it it’s first week on early access and there’ll be several more of those to come. Opening up the engine to also provides aspiring developers or current developers the means to get up to speed with the tools, creating a large pool of experienced users, which is attractive to AA developers to recruit from and pull information from.
As for the AAA, they’ll still be paying big license fees as it works out cheaper than the 5% royalty for them, and that’s where the big money always has been.