If I publish a free game I’ll have to pay 5%
No, just when it’s a commercial game (when you make money with it)
If I release a commercial product, what royalties are due to Epic, and when?
Generally, you are obligated to pay to Epic 5% of all gross revenue after the first $3,000 per game or application per calendar quarter, regardless of what company collects the revenue. For example, if your product earns $10 from sales on the App Store, the royalty due is $0.50 (5% of $10), even though you would receive roughly $7 from Apple after they deduct their distribution fee of roughly $3 (30% of $10).
Royalty payments are due 45 days after the close of each calendar quarter. Along with the payment, you must send a royalty report on a per-product basis. For more information, see here.
thank you very much
Exactly what would be you be paying 5% of XD
This depends, what do you mean “free”. If you mean “free-to-play” as in, free at first and then you pay for assets in-game, I believe Epic gets a cut of that.
Do note that if you earn revenue from advertising in your free game, I believe that also counts as revenue
So let’s say hypothetically, I had a website that had a PayPal donate button and it was like “Donate X Amount of $ to help pay for <insert cost” would that technically be the game “making money.” I know you’re not an Epic employee but I figured you’re well versed in the world of UE and what not so I thought you could help answer it.
Check out last stream about Marketing for more information.
You pay revenue from money that was generated by your project - does not matter how: sales, ads, in-game purchases and other stuff mentioned in EULA.
Difference between donations and other payments is fundamental. If your game is totally free and any user could play in full version without restrictions without additional payments - then you have clean donations and you’re free from revenue payments. But if donation grants access to some additional stuff in your games then it is a different story and you have to pay royalty.
Check out this part about Kickstarter from EULA
Disclaimer: Could be wrong, check everything by yourself
I think there it would be the same as with kickstarter -> so in your case I think that you dont have to pay the 5% because the players can also get your game without donating to you
** What if my product obtains crowdfunding via Kickstarter or another source?**
Royalties are due on revenue from Kickstarter or other crowdfunding sources when the revenue is actually attributable to your product, for example if the user is required to purchase a particular funding package to obtain access (now or later) to your product, or if that package gives the buyer benefits within the product such as in-game items or virtual currency.
Here’s an example of what we mean by “attributable”: Assume you provide two tiers of offers, a signed poster for $20, and a signed poster plus game access for $50. No royalties are due on ancillary products like posters, so no royalty is due on the $20 tier. On the $50 tier, the user is paying for the poster with a $20 value, and that implies that the remaining $30 of value is attributable to the product. So, for each $50 tier sale, you’d pay a royalty of $1.50 (5% of $30).
Edit: zeOrb you are too fast
Well thanks to you both, I plan on having my game 100% free because I’m tired of these game companies releasing “Complete games” and charging $60 for them and then abandoning them after 6 months. Or the “Perma-Alpha” games for $20-30…It’s irritating and I’m sick of it.
It’s not black and white, look at Terraria for example: low price, constant 50%-75% sales and constant huuuge updates!
Ok, I’ll give you that. There are games that are good, cheap, and are quality. But they are few and far between and most AAA titles are **** because if a game like CoD only lasts 3-6 months (peak game time after release) on average, the game is ****.
The market currently is saturated with 1/2 a$$'d games that are sold as “complete” or “Alpha/Early Access.” Like I understand the need for Alphas and Betas but don’t charge me $20-60 to get into a game that probably won’t ever get released because it will take them 1-2 years to get it ready and by that time the game is dead. I guess my issue is huge companies forcing **** and the market.