Epic Games CEO Tim Sweeney announced that the company will be implementing changes to the pricing of Unreal Engine non-gaming developers such as film, TV, and automotive.
Epic Games CEO Tim Sweeney arrives at the United States District Court on May 20, 2021 in Oakland, California.
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Unreal Engine Price Changes
During a presentation at Unreal Fest 2023, Sweeney explained that other industries outside gaming should prepare to start paying a per-seat licensing fee to use Unreal Engine. Moreover, while new changes will be implemented the CEO clarified that it will not be "unusually expensive or unusually inexpensive." He also compared the upcoming pricing structure would be similar to the subscription fees on Maya or Photoshop.
Aside from that, Sweeney is also distinguished that Epic's price hike different from other engine's royalties, probably referring to Unity. Previously, Unity implemented a revenue-sharing fee that received massive backlash from the development community.
It would be genius for Epic to adopt a per-set licensing plan as it would not cause that many changes to the developers who rely solely on the services of Unreal Engine. Most importantly, it will not disrupt the company's entire business model.
Epic CEO Addressed Recent Layoffs
Just a week prior to the recent layoff, Sweeney explained that Epic had been under financial problems which led to the withdrawal of employees. The company let go 16 percent of its workforce or around 870 employees in total. The company attributed the changes as a cost-cutting solution to prevent further financial damage.
On the other hand, Sweeney teased the upcoming development on the metaverse. He also assured that the company is stable enough to fund its work on the metaverse. Epic has been hoping to tap into the virtual opportunity with Meta, Microsoft, and other companies.
Related Article: Epic Games is Laying Off 870 Employees to Cut Costs
