Great news for indie developers today, especially those developing UDK games. Epic has just updated the licencing terms so a royalty rate of 25% of sales is not payable until your game has earned more than US$50,000. This is a 10x jump from the previous amount 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." said Epic VP and co-founder Mark Rein.
Here is an explanation from the licencing terms:
A team creates a game with UDK that they intend to sell. After six months of development, they release the game through digital distribution and they earn $60,000 in the first calendar quarter after release. Their use of UDK during development requires no fee. Upon release they would pay US $99 for a Royalty Bearing license. After earning $60,000, they would be required to pay Epic $2,500 ($0 on the first $50,000 in revenue, and $2,500 on the next $10,000 in revenue). On subsequent revenue, they are required to pay the 25% royalty.
Top work on lifting the bar once again Epic!