Unreal Engine Subscription Pricing Announced... But DONT PANIC!

First announced back at UnrealFest in 2023, Epic Games are adding subscription based per seat pricing to Unreal Engine 5.4 and beyond. For the vast majority of you though, you don't need to worry, these changes are for non-gaming projects. Even for those creating non-gaming projects, they only apply after you hit certain revenue thresholds. There are even some great new perks for game developers with announcements regarding TwinMotion and especially RealityCapture.
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[@gamefromscratch]

*Links* gamefromscratch.com/unreal-engine-2024-subscription-pricing-announced/ ----------------------------------------------------------------------------------------------------------- *Support* : www.patreon.com/gamefromscratch *GameDev News* : gamefromscratch.com *GameDev Tutorials* : devga.me *Discord* : discord.com/invite/R7tUVbD *Twitter* : twitter.com/gamefromscratch -----------------------------------------------------------------------------------------------------------

[@DarkDao]

Don't tell me what to do! * starts to panic *

[@JorgeFlores-ck8bp]

use godot

[@brodriguez11000]

@@JorgeFlores-ck8bp* more panicking *

[@mikerhinos]

@@JorgeFlores-ck8bp No Android VR capabilities anymore as far as I know :/ Unless you use an old

[@thegamedevcave]

so really it comes down to this : disney will pay more which supports more free tools for us! I'm a huge fan of that idea

[@sigrid714]

​@@user-uq2ko4jq2v They won't come for developers, since developers are already on the royalty model. This subscription is mostly because big film studios and other non-game users were generating no revenue since there is no monetization for non-game use. Honestly making big film studios pay while setting the income threshold high enough that it's still free for anyone who thinks $1850 is a lot of money, is a pretty reasonable monetization strategy. Would rather them build a sustainable business model than subsidizing everything with Fortnite money which is bound to implode sooner or later.

[@thegamedevcave]

@@user-uq2ko4jq2v theyre already changring devs with over 1 mil yearly income, it's just the small solo devs or like 2-3 person studios that have this for free now, which is 100% a common business strat, make our barrier to entry low, that way you have lots of users and when they become profesionals you can then monetize them. It's also the reason for instance that adobe doesn't really seem to care all too much about their software getting pirated for isntance.

[@radishdalek]

Reality capture going free for hobbyists is great

[@Healthy_Toki]

Seriously

[@SectorZeroGP]

Hobbyst and indies too :p Essentially anyone that isnt included in the 3 requirements at the same time: ---- generating 1M per year or more (in case you work for a big company you would use their license in job and your own free license for your personal projects i think) ---- not releasing games ---- not releasing apps for clients using the engine (like an VR virew of a zoo, for instance) Not gonna lie, if im right with that analysis, im very proud of their way to monetize it, pretty transparent, reasonable, good prices and adaptable to every situation. Lets be honest, if someday in the future i can generate more than 1M with a video i would be more than glad to contribute with all the incredible tools they gave me for free from the begining, 1800$ per year is basically less than 0.02% of the threshold... i dont think anyone can argument that is unfair :3

[@Uncle_Fred]

I'm torn on this one. Yes, I think it's fair to charge large non-gaming companies royalties to use the Unreal Engine. Epic is a business, not a charity. At the same time, this represents a 'tightening of the screws.' For now, Tim still controls Epic. What happens once he gets old and decides to make Epic a public company or sell it to someone who's not a game designer? The next owners will probably have a very different perspective. They'll see Epic purely as a source of profit and view Indie developers as free-loaders. New ownership will likely move to monetize anyone that uses UE for-profit purposes. This is why projects like Godot are so important for indie developers. I don't use it, but I hope it succeeds.

[@sunbleachedangel]

Well, if that ever happens (IF), we always have Godot and other free open source software

[@laeioun]

Well said. This is why succession has always been important.

[@frankgregory-xs6nw]

if it comes to that, best thing would be to put Unreal Engine on an air-gapped PC and hoard as many of the Megascans assets as you can starting now.

[@eth7928]

You never know when Epic decides to change their pricing models for Gaming Companies also.

[@mjdevlog]

If you have hope on godot, remember OpenAI was once "open"

[@hazzy155]

making RealityCapture free is going to be Big! It was very expensive to use before as just a hobbyist.

[@BarelySociable]

Still way cheaper and more reasonable than redshift or c4d or any of the render engines for blender

[@Jeal0usJelly]

These last few months of drought have made us very thirsty, please let us drink from the fountain of your creativity 🙏

[@timurradman3999]

Slow and steady, my friend, slow and steady

[@adog3129]

i didn't expect to see you here lol

[@randomcommenter10_]

I find this interesting since when Unreal Engine 4 first released, it actually was entirely subscription based but then shortly after, Epic removed it and got changed to the one we've known and loved for years now

[@iLikeTheUDK]

Not exactly? Back in the late aughts and early 2010s UE3 was completely free of charge, at least for indies, in the form of the Unreal Development Kit

[@randomcommenter10_]

Yeah I do also know about that for UE3/UDK. I was mainly talking about when UE4 initially came out, which came after UE3

[@voidmind]

If you code standing up instead of on a seat, it's free

[@HalkerVeil]

I code laying down.

[@Safetyman99]

If I code upside-down, does Epic pay me?

[@fhajji]

For Indie filmmakers, this is GREAT news and IMHO Epic Games is being very reasonable here, both with the minimum revenue thresholds, as well as by not retroactively changing the EULA for pre-5.4 versions.

[@MarioScott]

That depends where on the indie spectrum you are.

[@marioprawirosudiro7301]

@@MarioScott Yes. Lionsgate is indie, lest anyone forgets. People often think of "indie" as small, 10-people-at-most teams releasing lower budget products. While generally true, the word "indie" simply means independent. As in, not tied to a third-party publisher. So when it comes to gamedev, while EA is, technically speaking, not indie (EA's many studios and EA Entertainment are different business entities), Paradox Interactive (maker of Total War and Europa Univeralis, to name a few) and Valve definitely are. Also, IMHO thinking of Epic not retroactively changing their EULA as simply "reasonable" is a dangerous threshold. I'd say that's what one _should_ expect, by default. It's just standard practice. The moment you agree to a EULA, a contract is formed. Anyone that is willing to one-sidedly change an agreed-upon contract is someone that's not worth anyone else's time to do business with. Thus the backlash towards Unity.

[@SectorZeroGP]

Seems like if you dont update to 5.4 you can keep using it for free anyways, but lets be honest, the thresholds and quantities are more than fair and affordable :3 Indeed, think about this, 1800$ is less than 0.2% of threshhold... and is even going to have a disscount for more than 10 licenses at the same time... if i would be a big enterprise i would see it first as a fair contribution and second as an invest because they will probably use that money to keep offering even better tools :p

[@HalkerVeil]

A bigger loophole: Have all your income sent directly into a trust. That trust, although controlled by you as the trustee, is it's own entity. It's not using Unreal. YOU are a separate entity. "Corporations are people too" Works for taxes. But maybe that means corporations should go to prison too.

[@dire_prism]

Probably cheaper to create a small game.

[@tomgon3D]

This is a pricing system I’d like to see getting adopted for many, if not most applications like Adobe, Autodesk, Foundry. Heck, even MS Office. The revenue threshold can be way lower depending on the specific app but it would democratize how things are done and disincentive piracy. Plus it would kill the “but Blender is free” argument as it would apply to everything and the big customers care little as they can afford seats anyway

[@brianwest7344]

rubbish, worked for $10 billion revenue company. They very much care about paying $1800 for a single licence. That considerably cuts into profit margins.

[@leeroyjenkns5182]

It makes sense honestly. They already have good monetization for game industry but I assume more people are using the engine for archviz and renders nowadays.

[@booleanpointer]

We won't panicccccccccccccccccccccccccccccc

[@gamefromscratch]

Some will still panic. ;)

[@Elwaves2925]

@@gamefromscratch I have my towel.

[@gamefromscratch]

I was one hundred percent going to use a giant DONT PANIC on a towel for the thumbnail, but have a feeling that reference isn't as strong as it once was. ;)

[@jaredjones6570]

​@@gamefromscratch Forgive me- I had to Google the reference 😂

[@Elwaves2925]

@@gamefromscratch Probably not as strong these days but as long as someone gets it it's worth it.

[@muchaluchaartworks4849]

Would reality capture be covered under the 5% royalty if use in the your game making pipeline? Or would you still need to pay for the subscription after 1 Million. It's kinda confusing especially since they plan to fully integrate it in to unreal engine next year. All and all this a great pricing model

[@rifz42]

GOOD JOB! I really like that you said don't panic, after I watched this I saw so many other channels with click bait titles.

[@tomoprime217]

Hey Mike has Epic done anything new with the mobile reality capture? The last I recall a sign up beta was for iphone users only so to try to get more open 3d scans into Megascans for all Unreal Engine users. Wish there was a solution for android users even if it meant you had to buy a type-c plugin accessory.

[@MakotoIchinose]

Reality Scan is already a thing in Android, and it uploads to Sketchfab

[@jso19801980]

was trying to introduce UE at work as a form of rendering, but now itll be harder to justify a $1800 per seat renderer

[@comedyclub333]

So, they are basically introducing a special fee for the producers of "The Mandalorian"?

[@honaleri]

Sounds like a net win for peeps like me. I don't think I'd ever make 1million from an indie realtime movie- but I did like that film stuff was exempt from Royalties. But, good that 5.3 and below are exempt. Probably gonna stick with that then- just in case. (Lol, not that I'd ever need to worry about that-😆-). Also for the loophole... the games would need that 5% royalty over a million dollars right? So its not a real loophole. You'd still end up paying something. Possibly? Unless...the game was a flop? I don't know... I'm not sure. 🤷🏾‍♂️ Still sounds like a win that more resources are free for most people, but Unreal somehow makes more money as a result. Win win by me.

[@EricLefebvrePhotography]

I think the scenario that Mike is looking at is ... let's say you are a somewhat successfull film studio / production company like a Wyld Eye or a Asylum and you don't want to pay the seat license ... you grab a game template and some free assets and quickly put toegteher some shovelware to drop on steam. Doesn't matter if it is a success or not YOU MADE A GAME so EXEMPTION. LOL. I'm fairly certain the ACTUAL ToS will have better verbiage after all a quick news post / FAQ is NOT what I would use to base a legally problematic decision like this.

[@oliver-nation4377]

I'm glad that they stick with their Eula. But also i'm pretty sure what Unity tried to do was illigal and would not have gone well in the long run in EU

[@vince4417]

8:22 You will NOT lose access :) A little reading error.

[@m0rph3u5.]

" *Skewed big time, we are now* " .. said baby Yoda (aka Grogu) grudgingly

[@Taiylim]

The wording might be the issue, but otherwise there is no issue. If you make a game with Unreal you pay 5% Royalty at a certain threshold. That was it. Finally going after all the film, media, etc. companies making bank off using Unreal as a tool is a smart move and their limits are also reasonable. Again, I see no issue here. They are ironing out any holes in the use/pay of the software.

[@user-vi6xk1gi1c]

what about support on linux and on mac did they forgot to do that

[@blu3260]

Yeah I think I'll stick with godot for now

[@bltzcstrnx]

Unreal Engine does support Linux. You didn't know?

[@user-vi6xk1gi1c]

@@bltzcstrnx It doesn't exist if it exist they would fix the easiest problems that I faced there

[@bltzcstrnx]

@@user-vi6xk1gi1c I've run Unreal Editor on Linux in the past. At that time, I had to compile it myself. Nowadays, I heard they already have a launcher for Linux that also include asset marketplace.

[@ulrich-tonmoy]

But how do they describe a game either epic or the other big corp that use unreal for non game

[@reahreic7698]

We make serious games, which category do we fall into?

[@ulrich-tonmoy]

@@reahreic7698 these who fall into game dev category will fall into game dev as well as these who want to fall into the game dev category i guess

[@rmumof]

Basic free is very important because users can continue to learn.

[@shooterdefronvrps2]

I would imagine that to avoid conflicts they would have to separate the game making entities from filmmaking ones, cause imagine Warner getting a free pass to make films with unreal cause they released sushi squad

[@Nnnnng]

Guy please answer me how to mark the game non refundable?

[@jonmichaelgalindo]

TLDW; Reality Capture is now free. 😮

[@arryemoji]

I'm assuming using your own fork of 5.3 and merging code from 5.4 would count as using 5.4 because if not companies that would be more likey to maintain their own fork of the engine could use that as a loophole.

[@ivayloi736]

Wrong assumption... It's not how the branch is called, any new code comes with new license

[@developerdeveloper67]

And that is why I work in my own engine. Not completely but a big part of it.

[@NaudVanDalen]

Companies that make movies with UE5.4 can just create terrible asset flipper games to avoid the fees.

[@ameknite]

So this doesn't apply for assets because they are licensed to third party end users, right?

[@gamefromscratch]

Correct, although there might be weird exception for non game dev related assets.

[@kikijewell2967]

I wonder how this will work for a >$1M company hiring, for instance, contractors to scan, or buying scanned items on the marketplace. They're kinda getting use out of the tool, but not licensing that use.

[@Sen3D]

7:55 What you mean "some upside"?!?! That's some crazy good news! It means Reality Capture for free for indie devs.

[@gamefromscratch]

Listen, no matter how I word it, I get accused of clickbaiting ;)

[@screenapple1660]

KZbin and Google hates Unreal Engine. I can tell.... "1,850 per seat will to companies generating over $1million USD in annual gross revenue who are not creating games." Android Compiler. Google and KZbin is billion dollar company. lol. Disney's $1.5 billion stake in Epic Games is smartest move. They don't have to pay royalty fees.

[@StrikeTeam23]

Well it's certainly not a decision made by a former EA executive.

[@AKThem06]

For all the people who have plans to make porn with unreal, dont fret! Assuming youre a single person, youre just going to be paying 2k per year assuming you earn 1million per year and that's like (mostly less than) 0.25% of your revenue which is a fraction of what devs pay.

[@vectoralphaAI]

Wait so people actually make porn in UE and make millions from it? No way they would make that much money from it.

[@bam_bino__]

@@vectoralphaAI Sex sells, idk why CG porn is really repetetive.

[@kuromiLayfe]

If you make games and other products you have to pay per seat for those other products, just not on the games

[@jmalmsten]

As someone who only have looked at Unreal as a potential tool for making assets in my linear enterntainment (features, shorts, series and so on). This had me worried just for a little bit. But then I got to the bit that the payments only are enforced for those that make more than a million dollars a year... and I did calm down. Even if I got to that point. I would not have as much qualms about paying close to 2 thousand a year per seat. So I did not get to full panic Now... if unreal could port their render engine to work as a USD renderer in DaVinci Fusion. I would jump in to the Unreal world head first. :D

[@SectorZeroGP]

Epic/Unreal allways had a really nice philosophy about monetization, tbh is even better than what i figured, but what was for sure is that they are usually "user-friendly". For instance, when they aqquired megascans they basically put it for free for everyone from day 1 and rewarded the people who had a license in a good way. Honestly is a good company ^^

[@projectadrift7711]

It's always good to tax Hollywood.

[@Mahm00dM0hanad]

Fair enough, I work for one of the largest oil fields in the world and we the architectural team are using unreal for visualization and some pedestrian simulation for our proposals and safety studies, we are using unreal 100% for free. It’s time for those greedy companies to pay. Specially far Asian companies who are not paying for any software they’re using

[@brodriguez11000]

And this is going to change how? People who don't obey the rules don't start obeying them because one wants them to.

[@DuckyYTer]

Cant wait other channels clickbait with this again. “Unreal engine wont be free anymore” and shit

[@firesoul453]

Honestly it seems fair.

[@judeduval5724]

Does these changes apply to Unreal engine 4?

[@drinkwwwaterrr]

No

[@ahettinger525]

Only Unity has the retroactive price change feature.

[@leeoiou7295]

The reality capture news is the best

[@neoncyber2001]

This looks like it's the only way to get some revinue the likes of Disney.

[@ray3dx661]

Biggest sigh of relief after reading "for those not making games".

[@UltimatePerfection]

Glitch Productions is screwed.

[@blu3260]

Cool but I still can't use it on my steamdeck, sticking with godot

[@UxJoy]

... So gross company revenue post the first $1M will be considered for the royalty? A) This means your game better be in its own legal entity so that anything you earn outside the game is left out of the calculation. B) 5% of $1M is... $50,000 (right?) 👀 which likely means you will have to calculate 1xDev salary per year at a minimum on the cost table. C) Those who arent building games get to pay $1850 per seat and they are done? 🧐 That last part is an absolute doozy. If you are building 2D games - its probably smart to avoid this engine for now.

[@apollo12002]

Sounds Mostly harmless 😉

[@gamefromscratch]

The Hitchhiker references bring me joy.

[@spacegamedevsoftware]

This is awesome!

[@Mihimal]

That's why i chosen Godot 😊❤

[@ethanwasme4307]

anyone want to make an arcvis game...?

[@sergiorodrigoroyo5079]

Don't panic now. Panic when they extend this to game developers :)

[@indiesigi7807]

It will take many years before the current version is so obsolete you'd need to switch. On top you have the full source if anything were to change.

[@erikafurudo9960]

Thanks Unity 😂

[@TheMasterOfSafari]

boy.. what are these comments lmao. YT really needs to update their spam filters...

[@PersonWithDreamz]

Ik this problem has been going on for too long on KZbin

[@drinkwwwaterrr]

I know it doesn't affect game devs but since i might use Unreal for films and VFX this kinda stings... I'd rather it would be a royalty just like game dev

[@judeduval5724]

But isn't it the same? According to the video non UE5 game project only pay royalties. If they make 1 million.

[@sunbleachedangel]

This is, in fact, a good thing

[@jasonwilliams8730]

👍

[@StopItRyan]

Imagine not making a penny from some giant project like The Mandalorian because of a loophole. Good on Epic for keeping a cool head here and not screwing everyone. Also the carrot of free RealityCapture is awesome. I know a lot of indie devs are concerned about needing to pay for seats but realistically 98% of us will never be affected by this as it currently stands.

[@FilipeCSR]

No more unreal engine here after the update. A company with gross revenue over 1M from other sources other than CGI, where CGI is less than 2% of that revenue... Not worth it for linear and arch Viz. You will not model in UE (you will use some other software for dcc, more likely Max, blender or maya), using Vray and Vantage it is cheaper than UE 5.4 and you can create raytraced renders faster than with UE (UE is good with lumen and hardware raytrace, but pathtracer is very slow). I think that having a subscription value more expensive than any render engine is going to put off most small businesses.

[@indiesigi7807]

You can just keep using 5.3.

[@BlueSpawn]

You can stay with Unreal 5.3, which is an incredible engine, if you don’t want subscription.

[@Guilgd]

I actually think 5.4 will have some great news as an way to attract those subscribers clients to pay

[@Riley_Christian]

yea but this is only for large non game development studios. Game devs and small indie studios do not need a subscription

[@reahreic7698]

@@Guilgd 5.4 is supposed to have a real multithreaded rendering pipeline that improves performance instead of nuking it like nanite and lumen did. (at least that's what the rep I spoke with told us.)

[@jihadrouani5525]

Tim is fighting his way through Australia's courts against Apple, perhaps he needs more $$ to cover legal expenses.

[@LudvikKoutnyArt]

Australia's law firm expenses are probably comparable to US one. Australia's court is more or less the same too, except the court proceeding unfolds in a upside down setting.

[@twenty-fifth420]

@@LudvikKoutnyArt”Your honor, it appears that Apple only has the high ground because they haven’t gotten used to the upsidedownness of Australia.” “Ah yes, quite. Epic Motion, Epic.” >Apples proceeds to fall from the court room.

[@Midredel]

Time to start use Godot, Monogame, Nau engine

[@shadowlordalpha]

Hmm, the profit share model probably would have been better honestly.

[@gamefromscratch]

That's actually where the problem was generated. For film projects it might make sense, but for so many of these projects, there is never really a product sold, so you can't really capture any royalty. The flipside is if they went revenue share on a film or TV series, no films or tv series would use Unreal Engine then.

[@shadowlordalpha]

@gamefromscratch that's true, though they are going to lose quite a few just by adding on any price though that was probably expected.

[@EricLefebvrePhotography]

@@gamefromscratch It would NOT make sense for film studios. Let's say the studio makes 10 movies in a year and only one of those used Unreal Engine. They make 14 billion in gross sales so they have to pay 5% of 14 billion (So 700 Million dollars) when the tool was used in only 1/10 of their productions? The other thing is that hollywood is very good at reducing it;s costs. If you say that the COMPANY GETTING THE LICENS has to to make over 1 million then the studios will simply create a new company FOR EACH INDIVIDUAL FILM and then force that company to agree to us etheir studio for less than 1 million. It's called hollywood Accounting and it's a craft that the studios have been perfecting of half a century. Hollywood accounting can take several forms. In one form, a subsidiary is formed to perform a given activity and the parent entity will extract money out of the film's revenue in the form of charges for certain "services". For example, a film studio has a distribution arm as a sub-entity, which will then charge the studio a "distribution fee"-essentially, the studio charging itself a sum it has total control over and hence controlling the profitability report of a project.

[@ahettinger525]

​@@shadowlordalphaI'm not so sure: what is your alternative? If you want to stick with a game engine I suppose you can rewrite your tool-set for an open alternative... But that's also an expense. More likely you'll just stay on the current version

[@shadowlordalpha]

@ahettinger525 depends on who honestly. As for some depending on how many people there are it may make sense to just go and either use other tools or make their own

[@hookflash699]

The fact that panic was even a legitimate possibility is one of the best reasons to use FOSS whenever possible, imo.

[@developerdeveloper67]

F... 😂

[@e3.14c4]

That is extremely sad, the majority of cool things I have seen come out of Unreal are commercial indie non-gaming projects. Like music videos, live rigged environments, so on.

[@TheReferrer72]

Don't get your complaint you still have to have revenues of over 1 million USD per Year for this to effect you.

[@gruntaxeman3740]

There has been games using Unreal engine for decades.

[@at1965]

0.75x

[@screenapple1660]

Damn, Triple A have to make games fast or face layoffs.

[@gamefromscratch]

AAA are unimpacted by this change, they already committed to a 5% royalty (or negotiated their own license)

[@EricLefebvrePhotography]

@@gamefromscratch I THINK he meant film studios otherwise his comment makes no sense. LOL

[@manda3dprojects966]

Clickbait! I was thinking that it's the end of Unreal Engine too, just like how Unity did previous year.

[@vectoralphaAI]

It's not clickbait.

[@SnakeEngine]

Well, too bad it's good news.

[@RioTFF]

Instead of watching 11 minutes of nonsense that was news 6 months ago: There are no changes for gamedevs using UE 5.4 ... no sub required. Changes only affect large non-gaming companies & studios

[@hiperfx892]

You are a One Sided guy 😂😂, don’t worry 😂

[@ShadoFXPerino]

First they came for the filmmakers, and I did not speak out - because I was not a filmmaker...

[@HelloThere-rt6dh]

Stop assuming that all your viewers are just indie game devs. There are a lot of us in enterprise, serious games and vp that follow you for latest news in one video.

[@jotomato]

Good for you, prob not his major target audience then

[@IWillYeah]

​Exactly, game devs are his core audience, the main focus. ​@@jotomato

[@Freznosis]

Who would’ve thought a channel called *GAME* fromscratch was targeted at game devs? 😮 I wonder if I should start going to IGN to get all my movie news!

[@EricLefebvrePhotography]

I'm really upset that the guys over at Film Riot aren't doing any knitting tutorials. 😂 But honestly, GAMESfromscratch kind of says what HIS target audience is.

[@alexhooi7268]

The channel name is literally Gamesfromscratch. And the statement is clearly not intended to be offensive. If you really value getting news updates from this channel, maybe focus on how this new pricing scheme affects your industry instead.

[@omegablast2002]

lol disney

[@SeanBotha]

Funny your treatment of unity was completely different

[@Riley_Christian]

Because for unity this applied to game. For this it doesn't apply to games at all. So yea its litteraly completely different lol

[@RenderingUser]

funny how that's because unity's actions were completely different. learn to at least watch a video before commenting.

[@embyrdev]

Because Unity's situation was completely different. Per-install runtime fee on-top of expensive per-seat pricing. vs Adding per-seat pricing of non game developers who were not paying royalties in the first place. Unreal Engine is still in a better, more fair place than Unity was before the runtime fee was introduced.

[@Vondora]

Also, unity tried to do it recursevely, so you had to abide even if you didn't update the engine. Unreal is giving you the choice to ignore this and stick with the product you already have

[@thanoof]

​@@VondoraDon't you mean "retroactively" instead of "recursevely"?

[@mikaelpettersson5916]

Small studios will release cheap thirdperson games to abuse the loophole.