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UDK Royalty Threshold Raised to US$50,000

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  • started a topic UDK Royalty Threshold Raised to US$50,000

    UDK Royalty Threshold Raised to US$50,000

    Hi folks,

    We just wanted to let you know that we've raised the revenue threshold for UDK. Under the new rules you are not required to pay royalties on revenue earned from the use of UDK until that revenue exceeds US$50,000 which represents a 10-times increase over the previous threshold of US$5,000.

    We're really excited about folks making some amazing things with UDK and we realize that a lot of you are just started in the business so not having to pay royalties on your first $50,000 should help you get a financial footing toward building a quality game development business.

    One thing some folks didn't seem to realize is that whether you sell your product through digital distribution (or a retail location) the company doing the sale to the end user (called the "retailer") takes a cut (typically around 30%) for their efforts. The price they sell it for is called the retail price. The amount of money they pay to you on each sale is called the wholesale amount. When you pay us royalties you pay on the wholesale amount, i.e. the money you actually receive.

    Here are links to some examples that illustrate how UDK royalties work.

    Click image for larger version

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    If you have questions please feel free to post them below.

  • replied
    Although I am not an Indie developer, nor am I skilled at anything, I do love playing with UDK. I cannot tell you how much it thrills me that you have done this for the Indie teams. It solidifies my belief that Epic is truly a gaming company for the gamers. Unlike Frostbite, you took a chance to give developers a chance to use your engine, and develop games. Cry-engine is also a wonderful development tool. I love you both. Even though Cry-engine is WYSIWYG, it is still more difficult to navigate compared to the Unreal Engine. My only complaint is that there is no updated documentation when there are updates. Great job Epic!

    Leave a comment:


  • replied
    When you receive the license Epic supplies an Excel sheet which you are supposed to update and send to them quarterly.

    I have yet to send a report, however for this (the first) quarter we didn't do anything but pre-planning, so I don't know what is expected there. I could just type "0"s everywere.

    I wish Epic would split the threshold into "mobile" and "PC" developments. For example 50k is a lot of money for most mobile developers to make, but not much at all for a bigger team. The big team needs to reinvest a lot of the money, so 50k is not a very high threshold. 80 or 100k would be more appropriate for teams that release games that go on Greenlight, etc.

    Leave a comment:


  • replied
    Originally posted by trless View Post
    stupid question:
    how does Epic know how much money I make with my game?
    They could ask for your accounts. Your game will be distributed by a publisher or steam for example and they could always check with them. And dont forget it includes crowd funding etc.

    Leave a comment:


  • replied
    stupid question:
    how does Epic know how much money I make with my game?

    Leave a comment:


  • replied
    Originally posted by AlasdairH06 View Post
    Quick question when it says you sell you're game for $4.99 is that a fixed price ? Like if I make a full blown game I'm assuming that I can sell it for more then 5 bucks right?
    The $4.99 is an example. The price of your game is whatever you want it to be.

    Leave a comment:


  • replied
    Quick question when it says you sell you're game for $4.99 is that a fixed price ? Like if I make a full blown game I'm assuming that I can sell it for more then 5 bucks right?


    Sent from my iPad using Tapatalk - now Free

    Leave a comment:


  • replied
    Hi Mark and thank you for your kind post.
    I would like to ask one or two other questions.

    Scenario is I created an imaginary world and already have a website up for it where I exhibit works like comic books, films and short stories set in this world and they are all digital downloads via Google Wallet and coming off my own FTP server.
    I currently have a 2D map of the world one can look at on the site.
    I would like to use UDK to publish an interactive FREE walk through in this world so that visitors can get a really good feel for the place.

    I would like to know the following:
    1. If this walk through is free / free downloadable .exe file but the products on the site are not free and meant to make money, would I still need to pay Epic anything from the sales of these other products?
    2. Will Epic have the right to use any concepts / artwork / etc. or any parts of, what I have on this site for advertising purposes or share any of it with other parties involved? (What Google does when you set up a free website with them).

    Thank you!

    Leave a comment:


  • replied
    They might mention on their website it if it's good, but that's it. You have to do the bulk of the marketing work yourself.

    Leave a comment:


  • replied
    I have question will epic promo the game for you or does the development company for the have to do that ...?

    Leave a comment:


  • replied
    I have Question will Epic promo the game for if you send it in or is all up the development company to do that ...?

    Leave a comment:


  • replied
    That's awesomesauce

    Leave a comment:


  • replied
    It’s truly a fantastic and helpful piece of information. I’m pleased which you just shared this valuable information with us. Please stay us informed like this. Thank you for sharing.

    Leave a comment:


  • replied
    From what I got, what you earn under your licence is what you have to pay to Epic.
    Anything earned through another licence is for the owner of that licence to manage. Anything you get from them is yours.

    Leave a comment:


  • replied
    Originally posted by ffejnosliw View Post
    The license is per-company or developer and covers all games made. It's all under a single license and cumulative.
    Ok, so ye overruled me there.


    But what would be in the following case:

    Say I buy a license to release a small game completely on my own and I hit the $50k threshold.
    Later I start working on royalty base for another team who bought a license themselves. Would that effect me and my license in any way? After all it's earnings from the use of the UDK, but their project and license might not have hit the $50k yet while my did already, so would I have to give Epic their 25% share of what this studio pays me individually?

    Leave a comment:

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