*** UPDATE Oct 6, 2023 *** The information in the video is still accurate when it comes to game development, however, Epic Games has announced that, sometime in 2024, they will begin charging a licensing fee for non-game-development use of the software.

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Alright, so you want to get into video game development and you’ve heard that Unreal Engine 5 is the flagship game engine of the industry, and your next concern is “how much is this going to cost me?” But maybe you’ve heard a rumor that Unreal Engine is free and you’re wondering “is this true?” and if so “if it’s so good, how can it be free?”

Alright, so let me explain how it works. The answer to the question “Is Unreal Engine 5 free?” is “mostly yes.” So it’s free to register an account with Epic Games, the company that owns the engine. It’s free to download and install the engine. It’s free to develop games and even to publish and sell games that you make for a profit. The only catch is, if you publish a game and it makes over a million dollars, you must agree to pay Epic Games a 5% royalty on any money earned beyond that first million. But of course most people just getting into game development would consider that a good problem to have.

Alright, so that’s how it works and how the engine can be mostly free and yet still profitable to its parent company Epic Games. It’s basically free for the little guys with a 5% royalty for the big players in the industry.

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