Epic Games updates prices for non-game Unreal Engine projects

Epic Games has announced it is updating its prices for non-game Unreal Engine projects.

The pricing update applies to only those who are not making games. Now, Epic Games is providing pricing options for non-game users of the Unreal Engine, Twinmotion, and RealityCapture.

With the introduction of Unreal Engine 5.4 in April, Epic Games will introduce new seat-based subscriptions for non-game industries. This need to monetize the engine coincides with Unity’s own changes to its business model lately, where one price increase trigged a volatile reaction from game developers. Unity’s CEO John Riccitiello resigned as a result of that controversy. That’s why Epic Games is being careful in how it is communicating.

This pricing update will not apply to companies creating games, which will continue to follow the existing royalty model, with a 5% royalty on products exceeding $1 million in lifetime gross revenue.

Epic Games is the creator of Fortnite, the popular battle royale and metaverse-like game. And it also makes Unreal Engine, Twinmotion, and RealityCapture tools used to make games, movies, car dashboards, commercials and other 3D-animated media.

The changes aim to accommodate the evolving needs of developers and companies, introducing a new seat-based Unreal Subscription model for non-game industries.

With Unreal Engine 5.4, non-game companies generating over $1 million in U.S. dollars in annual gross revenue, will now have the option to subscribe to a seat-based Unreal Subscription priced at $1,850 per seat annually.

The move follows Epic Games’ announcement at Unreal Fest in New Orleans last year, outlining plans to introduce an enterprise software pricing model for industries beyond game development. The new non-game pricing model aims to fund future development efforts and support long-term sustainability.

For non-game industries, the new seat-based Unreal Subscription, priced at $1,850 per seat, will be applicable to companies that generate over $1 million in annual gross revenue and do not create games or applications licensed to third-party end users relying on Unreal Engine code at runtime.

Developers subscribing to the new model can use it to create linear content like film and television shows, architectural visualizations, graphics for broadcast and live events, products incorporating Unreal Engine code for internal or external use, and immersive experiences such as theme park rides and interactive architectural walkthroughs.

Companies currently using Unreal Engine 5.3 or previous versions will not be affected by the pricing changes until they decide to update to 5.4.

Each Unreal Subscription seat, priced at $1,850 annually, will provide a user access to Unreal Engine 5.4, Twinmotion, and RealityCapture. Epic Games plans to fully integrate Twinmotion and RealityCapture with Unreal Engine by the end of 2025.

To assist teams across industries in building high-quality 3D experiences, Twinmotion and RealityCapture are included in the subscription, offering visualization capabilities and photogrammetry solutions. However, community-based support and learning materials will remain free.

For studios or companies purchasing more than ten Unreal Subscription seats, Epic Direct Support will be available for an additional $1,500 per seat annually.

Additionally, Twinmotion and RealityCapture will still be available for individual purchase, with individual Twinmotion seats priced at $445 per year and RealityCapture seats at $1,250 per year.

Epic Games emphasized that these changes are aimed at ensuring the long-term sustainability of Unreal Engine development, with a commitment to keeping tools accessible for as many users as possible. The company aims to provide advanced creator tools to a diverse range of industries, from large enterprises to small studios and individuals.

Unreal Subscrition FAQ

Epic provided the frequently asked questions answers below.

What do I get with the Unreal Subscription?

Unreal Subscription seats are sold on a fixed user basis as an annual subscription that can be
renewed yearly. It includes entitlements to Unreal Engine, Twinmotion, and RealityCapture and
all updates released during the subscription period. Seats of the three products are fixed to the
same user. You can choose to transfer the three seats to a different user in your company at
any time, but the three product seats cannot be split between different users.

How will I be able to manage multiple seats within my company?

You will be able to select who can access the seats you buy through seat management
functionality within the new Epic Developer Portal, which will be available at all times. The first
opportunity to distribute and manage your seats will be part of the purchasing process, and
you’ll continue to have access and be able to make adjustments as your needs change.

Will I be able to assign seats to contractors outside of my organization?

Yes, you will be able to assign seats to external contractors.

I have existing custom licensing terms under the Unreal Enterprise Program (UEP). Do I
need a new license?

We will not be renewing existing UEP agreements, so when your current contract comes to an
end, you can choose to accept our new EULA if you want to stay current with Unreal Engine
releases. You’ll then need to purchase Unreal Subscription seats if your company makes more
than $1 million in annual gross revenue. If you don’t meet that threshold, and you are not
developing an application that is licensed to third-parties and incorporates Unreal Engine code
at runtime, you can use Unreal Engine for free. If you require Epic Direct Support via UDN or
custom terms, you can contact our business development team to discuss a new agreement.

Can I purchase Unreal Engine without Twinmotion and RealityCapture?

The Unreal Subscription comes with Twinmotion and RealityCapture. You don’t have to
download, install, or use Twinmotion and RealityCapture if you don’t want to, but they will be
available for you if you decide to give them a go in the future. We are including a license to
these products at no additional cost since our long-term plan is to make them fully accessible
within the Unreal Editor.

What will happen if I don’t renew my subscription?

You will not lose access to any of the tools or projects you’ve created, but if you want to keep
using Unreal Engine, Twinmotion, and RealityCapture, the EULA you signed does require you
to buy new seats and/or renew your subscription. The exception is if your annual gross revenue
has changed and you are now under the $1 million threshold.

What if I don’t update to UE 5.4? Will the pricing change impact me?

No. If you’re currently using UE 5.3 or a prior version, you may choose to remain under the
standard EULA for those versions, and don’t have to purchase seats. However, if you decide to
download UE 5.4 at a later date, you’ll be required to accept our new EULA and purchase seats
if the criteria applies to you.

I develop plugins for Unreal Engine. Do I need to purchase a seat?

No. You can continue to use Unreal Engine for free—we’re grateful you’re helping to improve
the Unreal Engine ecosystem for everyone. If you choose to sell your plugins in the Unreal
Engine Marketplace, our usual revenue share model (88% of revenue to you, the creator) will
continue to apply.

Is the $1 million threshold tied to product revenue or company revenue?

There are two $1 million thresholds and they depend on what you make and how much you
make.

Royalties are determined by the lifetime gross revenue of the product or title you’ve created.
Once that project has earned $1 million—whether that happens in a month, or three years down
the line—you’ll start paying royalties on your earnings above the first million dollars. Unreal Subscription prices are determined by your annual gross company revenue. If your company has reported earnings of $1 million or more in the last 12 months or fiscal year, you’ll need to pay for seats.

Is the $1 million revenue threshold always calculated in USD?

Yes, you should use a reasonable currency conversion rate to calculate whether your company
meets the $1 million revenue threshold.

What if my currency is other than USD and I am purchasing seats?

We support a number of other currencies and have adjusted pricing for certain geographical
locations. You’ll be shown the final price for your location after you start the purchase process
and before you pay.