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Epic Games News: Epic Games Reduces Royalty Rates To Attract Developers

October 2, 2024

Epic Games Unicorn News - October 02, 2024

Epic Games announces a new royalty rate reduction for Unreal Engine games, effective from January 2025. The new 3.5% rate aims to boost developer engagement by incentivizing launches on the Epic Games Store with additional financial benefits.

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( 00:00:33 ) Epic Games Announces New Royalty Rates and Store Incentives to Boost Developer Engagement

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Epic Games has announced a major update to its revenue share structure for games developed using Unreal Engine, effective January 1, 2025. The royalty rate will be reduced from 5% to 3.5%, but this new rate is contingent upon games launching on the Epic Games Store on day one. This reduced rate will apply across all platforms, including Steam and gaming consoles, as long as the initial launch condition is met. Additionally, Epic Games offers an 88/12% revenue share and a 0% royalty rate for purchases made using Epic's payment processor. They also have a First Run program, which allows developers to retain 100% of their revenue for the first six months if they launch exclusively on Epic's platform. For iOS developers, Epic Games is providing a temporary exemption from the reduced royalty rate due to Apple's Core Technology Fee in the EU. These initiatives are part of Epic's broader 'Launch Everywhere with Epic' incentive program, designed to make their platform more appealing to game developers.

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