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Clarification on 25% royalties

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    #46
    Just heard back through email about some questions of my own regarding the license.

    I'll quote the parts relating to certain things discussed here.
    If you sell a game via Steam and Stream charges you 30% the royalty would be calculated on the 70% Steam remits to you.
    Which is great!
    For those of you scratching your heads...
    This means Epic treats it as if you've sold Steam physical copies at a prenegotiated price.

    If you are going to make/sell a game to the public the royalty terms are the only terms available to you.
    Dun dun dunnnn.
    As you can see, this confirms the speculation that the 2.5k per seat license is only for in-house applications.


    Doesn't answer all the questions in this thread but its great to at least have some official word on the matter.

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      #47
      I just shot off an email too with a range of additional questions...

      Good news though. Now I want to know about VAT, and services and trainings.

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        #48
        ambershee - Thanks for your response. Again, I am not claiming there is no difference, just that it is a distinction with out a real difference to me. That is my revenue which I never see reduced by costs I don't actually pay, it's just gone. It feels like that wasn't my revenue in the first place. Too bad that this appears to be a case where the devil in the details trumps common sense.

        Edit: In the immortal words of Emily Litella, Never mind!

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          #49
          They do take a lot, taking vat and distribution under consideration leaves you with very little money, BUT on the other hand, you have a free tool of extreme power thanks to which you can compete with the biggest game developers out there - free of charge until you start selling. Also, it is a great deal for students and stuff.

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            #50
            Digit, that's brilliant news indeed (and not what most of us interpreted it as). That leaves a much healthier margin for profit.

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              #51
              This actually isn't the way to do this.

              First of all, portals such as Steam will take sales tax as well. They won't give you xx% without taking sales tax unless you sign some special agreement.

              Some posters say Epic's 25% is on gross revenue, and now suddenly it's on net takings by the developer. Epic has to come out and be clear, they release an awesome sdk but their license fees are obviously not clear at all.

              Would you be willing to base a contract on some forum posts saying it's this or that? You could be talking thousands, hundreds of thousands of dollars in difference of what you owe Epic. Come on. Someone from Epic has to make the license fees clear.

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                #52
                i agree we need someone from epic to clear this up.

                what would the cost be if u had it on your own website??

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                  #53
                  Steam looks like a rip-off. Look into alternatives like Direct2Drive, gog, etc... There are also Google ads. You can also consider you game as trial and upload it to shareware sites like Tucows and download.com

                  In order to get paid you have the digital distributtors. But of course you should set up your web page since Google ads and shareware sites link there. You should have one anyway for screenshots, videos, tutorial, even forum.

                  Note: I'm not talking about dropping Steam. It's great advertising and you get paid. It's just that you shouldn't be tied to one solution

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                    #54
                    Originally posted by cdiddy View Post
                    i agree we need someone from epic to clear this up.

                    what would the cost be if u had it on your own website??
                    For a pretty large game, about 30USD a month, 50USD a month max. Fixed price, so if you sell 1 game or 30 000, it is still just 50USD.

                    It is very doable. The big problem is making people visit your site. Getting the whole website, including secure e-commerce service, up and running isn't incredibly expensive or difficult at all.

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