Highly hypothetical question about 5% royalty and multiple games

I have a highly hypothetical scenario involving the Unreal 5% royalty fee that came up in a discussion among Unity3D users. Could someone from Unreal please confirm my calculations.

  1. If the 5% fee is based only on amounts exceeding $3000 per quarter per product, a developer could potentially make up to $12,000 per year from a single game and not have to pay any of that 5% at all, correct? (as long as revenues don’t exceed 3000 in any given quarter)

  2. And since the $3000 floor is calculated PER PRODUCT, a developer might hypothetically create 10 small games each making $12,000 a year (that’s $120,000 a year) and never have to pay any of that 5% at all, correct? (as long as revenues don’t exceed 3000 in any given quarter for any given game)

Like I said, not really a likely real-world case. But I still think it’s a relevant question because many indie devs do end up making multiple small games that each don’t make very much individually, but may bring in somewhat significant revenue in aggregate.

Yes, it’s per game, says so on the website.

Thanks darthviper. I read the general terms on the website as well.

But I would like someone who officially works at Unreal to confirm my hypothetical calculations to put all discussion on this matter to rest!

You should ask this at AnswerHub then so that Epic’s legal staff can answer you.

Yes, your interpretation of the terms is correct.

Awesome, thank you very much Tim!