At this week’s Game Developers Conference in San Francisco, two of the foremost video game developers disrupted the gaming world. Developers Epic Games and Unity said they would be modifying their existing subscription schemes with free entry-level access to their proprietary game engines
Game engines are the behind-the-scenes platforms that power video game development and operations. The announcements are a clear indication that both of these companies are in close competition to be “the platform of choice for developers to build blockbuster video games, students to build cool projects, movie directors to build virtual worlds, and scientists to perform computer experiments,” according to Business Insider.
Epic Games, the developer of the popular Gears of War franchise, is now offering initial access to its Unreal Engine 4 for free until a game grosses over $3,000. After that point, it will take 5% of revenues per quarter.
Last year Epic announced that it was doing away with its existing model, which charged a $99 license fee and collected 25% of revenue on games than made more than $50,000. That model was replaced by a $20 a month subscription plan, seen as an attempt to capitalize on the rise of smaller “indie” game developers, in the hopes of incubating the next big hit.
Not to be outdone, Unity announced a free subscription level for its Unity 5 engine for all projects coming in under $100,000 in revenue or funding. After exceeding that threshold, a $75 per month subscription or a $1,500 flat fee will kick in.
Insider Take
The changes by Epic and Unity in their subscription models is based on a common assessment of the state of game development – it’s an increasingly democratic and decentralized field to the point where the next blockbuster franchise could come from any direction, at any time. By offering nascent developers free access to their game engines, they are hoping to build their brand by having their engine associated with the success of popular titles, and to potentially gobble up promising games as they’re in the early stages of development.
While the shedding of a subscription model that brings in guaranteed revenue is not for the faint of heart, nor should it be attempted by every business, these companies see the potential in allowing unfettered access at the beginning of the development process, with a payoff farther down the road. Given the gaming market, it’s a must do competitive and strategic move. We’ll be watching to see how this plays out.
