Question about royalties for free games

[anonymous_user_df3f3eb1]

Hi guys, the first, if thread is in an incorrect section, please move it.

Now, i was looking for a game engine (free licence) for make a game, a small proyect just for learn, and my objetive is public it in google play but free, i hope you understand me.
Then, i saw that unreal engine is free, i read the blog and i see that i have to pay 5% royalty,and i dont know what’s that.

If I want to make a small game and public it on google play free, What i have to pay?

Again, i hope u understand me.

Kind regards ^^

PD: My english is bad if u see that i’m not really cordial, is for that. Thank’s u so much.

[n00854180t]

If your game is free, you don’t owe any royalties, generally speaking.

(I moved your thread to general discussion and edited the title to be a bit clearer.)

[anonymous_user_0df12f74]

Hey there, welcome to the forums!

If your game is free, and you are not making any money from Ad revenue generated by your game, you owe Epic nothing.

If you do get Ad revenue, you pay 5% of the total revenue over $3000 per quarter. If you make less than $3000 per quarter, you again owe Epic nothing.

Here is a quote from the FAQ:

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: Richtlinien für die Veröffentlichung und Lizenzgebührennachverfolgung - Unreal Engine

Häufig gestellte Fragen – Unreal Engine

[bcm27]

Copied from Epics Q/A

How much do I have to pay for Unreal Engine 4?
UE4 is free to use, with a 5% royalty on gross product revenue after the first $3,000 per game per calendar quarter from commercial products. Read the EULA FAQ for more details.

So the things we would need to know for a commercial game: How much are you making per calendar quarter, (4 quarters to a year), and for each quarter the total profits ABOVE 3,000 USD you would to take 3% off the top and give that to Epic.

But sense you are making a free product on the play store, you would not need to pay anything, UNLESS you made over 3,000 USD with your product. And means gross profit, whether its from actually selling the title, or from ad revenue.

[bcm27]

I literally had typed up the same information, but you beat me to it

Jeo99Canario, hope clears things up! The mods know what they are doing.

[ZenrokStudios]

Great information, thank you

[anonymous_user_df3f3eb1]

All clear ^^
I didn’t see those FAQ’s, thanks for that information and thanks for move my thread to the correct section.

Kind Regards

[anonymous_user_2bf7e8bb]

Clear as BALLSSS. Thanx Epic for not being greedY!!!

[ENiKS]

I would have another question about the royalty - Let’s say I’m developing a complete HW + SW product, for instance arcade cabinet. The sale is price is 50K USD and a large portion of it is the hardware (cabinet, screen, input …), do i have to pay royalty on the entire cabinet? (ie 2500 USD per unit?)

[n00854180t]

@ENiKS - if that would fall under a work for hire style thing, there wouldn’t be royalties. Also, depending on how its set up, I believe there are no royalties on arcades, either. Go check the EULA where it defines the exceptions to the royalty payment.