While everyone in games and 3D graphics are enthusing over the new tech demo for Unreal Engine 5 (see below), it's probably the fine print that's more important today. Specifically, its updated royalty agreement:
"You may have missed it in all of the #UE5 excitement," as Epic evangelist Alan Noon puts it, "but my fellow #gamedev people might want to take note of the new licensing terms: Royalties are waived on your first $1 million in gross revenue."
"This is a really cool move by Epic Games for small teams and people just getting started," as indie game dev Chet Faliszek puts it. While it won't matter to major developers and publishers for whom $1 million is a pittance, it will mean everything for tiny studios-- especially for those focused on VR, where a $1 million gross tends to be toward the high end for a hit game going after the VR-0nly market.
This is the kind of dramatic move, by the way, that I was hoping Valve would make with its Alyx/Index launch. By taking a cut in royalty revenue (most games don't gross above $1 million), Epic is growing the ecosystem, and giving a much-needed boon to the still-struggling VR niche.
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