Epic Games has unveiled its pricing plan for companies using its Unreal Engine for non-game development.

Epic announced last year that it would unveil “an Unreal Engine seat-based enterprise software pricing model for industries other than game development” in 2024. The company has made good on that promise, saying it will cost $1,850 per seat annually.

The company also said Unreal Engine will remain free for students, hobbyists, and smaller companies.

Unreal Engine will remain free to use for students, educators, hobbyists, and companies generating less than $1 million in annual gross revenue. We are not changing our licensing model for game developers, who will continue to pay a 5% royalty on products that exceed $1 million in lifetime gross revenue. The first $1 million that a game generates is exempt from royalties, and revenue earned through the Epic Games Store is exempt from overall royalty calculations, just as it is today.

The company says royalties will come into play non-game applications that are licensed to third parties.

If you’re developing a non-game application that is licensed to third-party end users and relies on Unreal Engine code at runtime then you will need to pay royalties just like game developers do. You will pay a 5% royalty on products that exceed $1 million in lifetime gross revenue.

If you are currently using Unreal Engine 5.3 or any other prior versions, pricing changes will not apply to you until you decide to update to 5.4. Pricing changes will not apply to new or existing users of Unreal Engine 5.3 or any other prior version; they will only apply to users of Unreal Engine 5.4 or later. You can view the Unreal Engine roadmap to see what’s planned for 5.4 and beyond.