I want to start making games. Need clarification first.

[anonymous_user_a2ec11f5]

@;101236

The 5% royalty is for a commercially released game, and you would give 5% of your earnings to Epic for each released game you have, but only occurs once the game is making money. Same thing goes for Kickstarter etc, you only pay 5% on earnings, so no you don’t need to worry about it while you are in development. So long as your game is earning money, you will need to pay the 5% royalty quarterly on each game.
Hope that makes sense…

With Kickstarter remember that any money from backers that goes towards pre-purchasing the game still counts as earnings. They are technically buying your game, after all. Any money paid that is “attributable” to the cost of the game will have royalties due.

The example I saw goes like : if one tier includes just the game for $30 then you owe $1.50 in royalties. If a higher tier for $50 includes the game, a t-shirt, and a poster then $30 of the $50 is attributable to the game (while $20 is attributable to the poster and t-shirt) so you will owe $1.50 in royalties for that backer as well.

Or something like that. Obviously, if you’re running a Kickstarter, you’d probably want to run your numbers by Epic to get clarification from their lawyers/accountants.