Releasing game fee???

[VanBandama]

Hi I’m new to forum. Me and my friends are considiering using UE4 for our game. But I don’t understand a thing about royalties
Basically subscription, what subscription since UE is free?

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.

Me and friends are happy about this part

and on the custom licensing page I see this:

Epic Games charges a 5% royalty based on gross revenue for the use of Unreal Engine 4 under the subscription plan.

So which one is true/or when subscription plan is working?

[darthviper107]

When UE4 was first released it required a subscription fee, that is no longer the case since last year.

You still pay the same royalty terms though, if you make more than $3,000 a quarter then you must pay 5% of gross revenue beyond that first $3,000