Is UE4 the most expensive Game Engine on the planet / of all times?
That‘s what I asked myself when I read the EULA. I have officially asked if the 5% royalty is capped once a certain gross revenue is reached. Since Epic has not responded to my written request, I am forced to clarify this here.
Excerpt from the EULA:
“…You agree to pay Epic a royalty equal to 5% of all worldwide gross revenue actually attributable to each Product, regardless of whether that revenue is received by you or any other person or legal entity, as follows…”
“…Royalties must be reported and paid on a per-Product basis. The $3,000 per Product per calendar quarter royalty exemption may not be aggregated across multiple Products….”
“…Epic reserves the right to charge a 2% late fee, per calendar quarter (compounding), for any amounts unpaid after the required due date…”
So the pubg-company (sold over 30 million copies now) has to pay over $40 millions to Epic???
And if they pay a bit too late, they have to pay $16 millions more???
Really Epic? Is that your business model? Just to be interesting for kids and hobby developers (under 100k revenue)?
I think the developers of “Kingdom Come: Deliverance” are happy using the CryEngine 
…because when I take a look at steam spy today, they already had to pay more than $1,7 Million to Epic (if they had used UE4).
>>>A comparison/calculation of the most common game engines is attached as picture<<<
I read that people compare UE4 (5%) with Steam (30%), but I do not know how old those people are. It’s different when a seller/publisher asks for a percentage fee. But it’s a no go if royalties are required for “tools” and I tell you why:
Imagine Microsoft suddenly demands a royalty equal to 5% of all worldwide gross revenue for Windows. Adobe does the same with 3ds Max, Maya, etc. …and other companies will follow…
Here is an exaggerated example, so that all the madness becomes clear:
The hardware store of your confidence gives you a hammer and demands 5% of what you earn from it. The private individual is happy - the businessman prefers to buy a hammer for 5 EUR, because he knows that it would be the most expensive hammer in history.
Most of you know that the current billing model is total madness.
I would now like a factual, professional discussion. So what do you think, which billing model suits your work best?
What payment would you prefer (monthly, anualy, capped royalty, etc.) and why?