Unreal Engine royalty fee reducing to 3.5% for games landing on Epic Games Store on launch day

• Epic is lowering its Unreal fee to 3.5% for games releasing simultaneously on the Epic Games Store
• Called Launch Everywhere with Epic, this initiative will come into place on January 1st, 2025

Stay Informed

Epic Games is lowering its royalty fee to 3.5% for games made in Unreal Engine starting January 1st, 2025. However, those games must be released on launch day on the Epic Games Store.

The discounted rate will apply to earnings across all stores in a clear move to incentivise Unreal users to launch new titles on the Epic Games Store immediately, reducing their own costs while making the store more attractive to consumers.

As the name implies, this strategy, called Launch Everywhere with Epic, will apply to all platforms where the Epic Games Store is present: Android, PC and Mac. iOS is the one exception for now, with Epic currently waiving the same-day release requirement due to Apple’s Core Technology Fee.

However, if a developer launches a game built in Unreal on any of these other platforms without a day one Epic Games Store release, their royalty charge will remain at 5%.

Furthermore, if an Unreal game expands to a new platform without an Epic Games Store release, the fee will revert. This means that an Unreal-built mobile game ported to PC, for example, will be charged a 5% fee again unless it’s made available on the Epic Games Store there too.

A broadening games library

Epic currently charges game developers a 5% fee on all lifetime revenue above $1 million for games made with Unreal Engine, except for sales on its store if Epic is a payment processor; in this instance, revenue is royalty-free. This is all in an effort to make the Epic Games Store an increasingly enticing place for developers and users seeking out new games.

Making the Epic Games Store an attractive alternative is clearly a big focus for the Fortnite creator, especially after its release on Android and iOS this summer. After all, the Launch Everywhere with Epic initiative has been announced just weeks after the reveal of exclusivity programme Epic First Run.

Beginning October 16th, 2024, eligible participants in Epic First Run will receive 100% of their net revenue from new titles on the Epic Games Store for the first six months after launch, regardless of whether they’re developed in Unreal Engine. This fee-free offering could mean significant extra earnings over that first half-year, essentially handing devs their gross earnings instead of the standard net.

After the first six months have elapsed, participants will have to give Epic Games 12% of future revenue from the store.

Commenting on Launch Everywhere with Epic, Epic Games said: “With the huge pressure on margins across the game business, we’re improving our engine and store terms further to help you reach bigger audiences with more developer-friendly terms.”