Game engines and royalty fees for creating a game
polycounter lvl 4
So,i've searched a bit in here,saw a S2 engine which takes a fee only if u make over 100000$
UDK is also free untill u make over 50000$?
Unity looks like 100000$ too
Now,all of them state that it reffers to commercial entity.
So,in order to get the licence for using any of those engines publicly,u have to start a company?
How does this work if the game released is free to play and download?
And only possible income for it is via volontary donations.
Does it still has to have legal commercial 'body' behind it,or it can be a one man hoby,with open donations?
If none of these don't work that way,then is there any engine that allows this,creating a game,releasing it as a free game,then allowing people to donate if they will?
UDK is also free untill u make over 50000$?
Unity looks like 100000$ too
Now,all of them state that it reffers to commercial entity.
So,in order to get the licence for using any of those engines publicly,u have to start a company?
How does this work if the game released is free to play and download?
And only possible income for it is via volontary donations.
Does it still has to have legal commercial 'body' behind it,or it can be a one man hoby,with open donations?
If none of these don't work that way,then is there any engine that allows this,creating a game,releasing it as a free game,then allowing people to donate if they will?
Replies
I there there is new one, Havok Engine, totally free as they mentioned(not sure though), Going through it.
This graphics engine is free for commercial use, open source and can be modified up to your own workflow. You do require a strong background in coding.
Usually with UDK and Unity is; UDK takes 2k with 20% of your total gross upon each product you make that sells for 50k+.
Unity just takes the 20% of the total gross upon each product you make and sell.
You are not selling here per say so, the way I see it, the donations do not link with the actual game but for your own support right? So it shouldnt be an issue.
Define legal commercial body?
to normal people donations are income too and subject to taxes.
A 'studio" or company.
Like,if i do create a free game,and then set up donation system,can i stay individual in terms of to whom is the money being donated,or do i need to have a commercial company,and direct all donation to it?
I'm from europe,non EU country.
For instance,i've been having paypal account for a while now,i received some cash from time to time from various people,and i transfered it to my CreditCard and cashed it in at bank machine without having to report any income or anything.
Bank did took its percent for using the card to cashout thought
http://unity3d.com/unity/faq
Just use that.
I really don't know where you are getting your info from on unity, do you have a link?
Edit: In my understanding if you make over $100,000 you would need to upgrade to unity pro. Even then you still do not pay royalties. So Unity Pro would be just an initial $1500.00
Wow, I took legal body in a completely different sense. As in a Lawyer.
Anyways; If that donation is just for support and for you, it cant be touched, since its not linked with the actual project. However; if there is anyway they find out that the donation is for the project/ game project funding, they may consider it as an income made from the game.
My opinions.
I would wait and love to have someone far more experienced then me to jump in this thread and start this discussion.
You should probably talk to a lawyer and/or financial advisor in your country. The reasons for forming a company is to protect yourself, it's not a requirement.
My God,you are right.
I read it from EULA ,turns out i missunderstood the size restriction for unity free,i understood it they way i said it in first post,not like it really is(like you said).
Wouldn't figured out otherwise
To widen the matter more,what protection does the company provide,compared to individual?
I am aware of LLP's,and the way they provide protection for freelancers.
Maybe companies differenciate the personal funds from 'bussines' ones?So the whole work and income/outcome is more transparent?
What is the worst outcome possible for someone releasing the freeware game title?
Is there a way in which the whole "support me via donations" system can backfire,even if it is done 'properly'(meaning that i dont ask donations as a payment for a game,but just as a way for someone to say 'thank you' if they choose so)
So,what other aspects are there to consider?
Sound effects,music?Those would be done with artists permision or from some free database.
Art and game idea?Is there a document or something along those lines that states the line where something is too similar to other product.
Or is it something that varies from case to case?
Like,game being a 2D top action shooter isnt stealing.It featuring a some particulal scenery(like futuristic/WW2) shouldnt be too.
I've seen stuff looking too similiar,and yet,it being released/planned for(like megaman reboot).Where does the law draw the line ?
I'm far from being able to make anything close to game by myself.
But i wanted to research into the whole aspect of it,probbably there are more members who are wondering about this.
These whole risks of releasing a game,not to make money with,but just to release it for the sake of it,to show your skill set,your imagination,your efforts.
I guess it would be easy to even put a price tag on that title once you've done all of that correctly?Greenlight from steam looks like a place to go.
If you want to avoid high costs, I would suggest going with Unity over UDK. The UDK contract specifies a percentage royalty, while the Unity contract is just for a flat fee license purchase. Unity just has one expense that you have to pay once, and it isn't a terribly high expense. The UDK stipulates a recurring expense that swells based on how much money your game is making. The better your software does, the more you have to pay out.
Of course, this is just one aspect of development to consider when choosing your engine. There are plenty of other considerations that you should be looking into. In terms of general license cost though, I would recommend Unity.
It's per studio, not per game.
The point at which the studio has made an income of that total no matter what amount of games they'll have to go pro.
But again, donations are not different from actual sales income, it just means the people donating won't get anything in return, but you'll still have to pay taxes for it if you've reached above whatever limit of income (per legal entity) that is defined in the specific country.
Skipping on taxes comes with way bigger consequences than skipping on buying pro version of unity.
No. UDK is free then takes 25% after your first $50,000. This is a pretty reasonable deal if you're not crowdfunding and not expecting to make more than one product.
everybody wins
Blender (free and fantastic)
Unity ($1500)
Photoshop ($20 per month? so $240 for the year)
and keep the rest for any other things that might crop up. zbrush is a nice investment purchase but it largely depends on your project as to whether it's essential. you could also argue that Maya LT would be a good investment for the price as well.
anyway, for the OP:
the way i would interpret this is:
if you make a game with unity free, and sell it, and it generates $100k for you, then you need to buy unity pro for your next project. if you already make $100k, you need to buy a pro license before you make your game.
Now,another question pops to my mind,based on Gir's explanation on licences required and budget needs for a game which would have some 'reward' system for the work thrown at it.
Would a game without price and optional donating feature require same sort of licencing of the software?
Like 3D max student version for instance,it is free for educational purposes.
So,can a full game be released,just for the sake of 'demoing' someone's skills?
Does the software company sees that action as a way of education/skill improvement?
Lets take a 3D max student version for example.I know it's free to use and create models for learning and education,but you can't use it for making models to put into game with price tag.
Does the same policy applies to a grander scale,where those same models are featured in an educational project(full sized free game),through which the author gains experience and knowledge?
I might be a bit boring with all these questions,but i want to use this opportunity and get answers to as many questions possible,which relate to whole process of game releasing,be it free or not.
It mighh be of good use to someone sometimes.
Cheers all
the percentage cut from unity only kicks in if you hand your game to unity over so that they port it to different platforms for you
i am not completly sure what they cover with their services, but its something along these lines
Does the game, in any way, form, or fashion, drive revenue(money) to you, the creator, and or your company?
If yes, then its a commercial venture and you need proper licencing.
Also if you want concrete info: READ THE LICENCING AGREEMENT.
From the autodesk educational licencing faq:
"Can I now use the free software for commercial purposes?
No, these licenses are meant for educational purposes only."
Education, in their licensing means "Used at or while attending School"
Unity has a program called Union:
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They will port your game to platforms that aren't directly supported by the standard Unity packages. Platforms like the Roku and LG Smart TVs. Unity takes a percentage cut if they help you get on these platforms.
They take 20% of the net, you keep 80% of the net. And they pay all of the upfront costs.