Question: Does Unreal Engine Take a Cut of Game Revenue?

Answer

Yes, Epic Games, the company behind Unreal Engine, takes a percentage of the revenue from games made with their engine. Here's how the royalty system works:

Unreal Engine is free to download and use, and developers were not required to pay upfront costs. Instead, Epic Games charges a 5% royalty on gross revenue after the first $1 million in revenue per game or application.

Here's an example of how the royalty payment would be calculated:

If your game made $1.2 million in revenue, the calculation for the royalty payment would be as follows:

- The first $1 million is royalty-free.
- The remaining $200,000 is subject to a 5% royalty.
- The royalty due would be 5% of $200,000, which equals $10,000.

However, it's important to note that these terms were subject to change, and Epic Games can update their policy. For the most current information on Unreal Engine's monetization policy, you should refer to the official Unreal Engine website or Epic Games' licensing terms. They also occasionally run special promotions or have different terms for developers who use their Epic Games Store platform.

To summarize, while Unreal Engine does take a cut of the game's revenue, their model was designed to allow developers to start developing without any initial cost, helping to democratize game development by removing financial barriers to entry.