Technically, most charities have ways to make money, but the goal is not to make a profit, the shortfall then is made up by people willing to make donations and investments (in the form of both time and money). In the US that is called being a non-profit organization.
Epic meanwhile has been a decidedly for-profit business for over two decades, they could decide not to make money, but they have many shareholders and investors that expect a return on their funding.
While the fortnite revenue was great for them, Epic is also getting a lot of investments from outside sources. For example, Sony gave them a $200 million strategic growth investment, specifically aimed at helping Epic expand. Not to mention Epic gets a cut of all the games made with Unreal that fit within the royalty scheme.
Where is this “not making money” idea coming from exactly? Because from where I sit they are practically printing cash and I’m sure they’re not sitting around waiting for the Fortnite stream to fizzle out.
There is this bizarre idea that somehow a bunch of dudes on a public forum have somehow figured out what these corporations haven’t. Like somehow we have all come up with an idea that nobody else in the entire corporate Epic workforce has never thought of. I suppose that’s the nature of the internet, everyone’s got an opinion. But it is somewhat laughable that so many people assume that Epic (or Adobe, or Apple, or Amazon, or Google, or…gasp Blender Foundation) haven’t already poured countless hours into figuring out how to stay on top. All of these guys are operating at least one decade ahead of the public.
Epic is absolutely in it for the maximization of profit, and I am sure that part of that strategy involves giving out Unreal and other ancillary products for free. They’re not the only ones either, Blackmagic for one basically gives one of the best editing and finishing platforms away for free and they are thriving financially. It wouldn’t surprise me one bit if SideFX makes some version of Houdini Indie free in the next couple of years (I know they have Apprentice already, but I’m talking about a step up from that which will likely be designed to work primarily with Unreal).
Anyhoo…let’s see who else chimes in with some mind-blowing idea that nobody at Epic could have possibly thought of.
The Apple vs Epic lawsuit shows that while Epic makes decent revenue from UE and services associated with it, it’s not Fortnite “I’m going to buy these 4 companies” type of money. I’m thinking that’s why they are pushing so hard on the Epic store. If they get that up and running and profitable they can make significant revenue there.
I agree it’s not a charity but a well funded AAA game can cost more than $100 million to make. A decent sized tentpole Hollywood movie can cost upwards of $150 million to make. It’s a matter of perspective.
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It is simple. Epic don’t make enough money from UE to buy all these toy for Tim. Tim got a life time chance to spend money from Fortnite and investors. They got $750 mil not long ago. All good so far. But, as the money from Fortnite is reduced or stopped and the investment money spent, they will have to come up with some ways to recover their “investment”. If anyone think UE will remain as free for non-game use. You are naive. One of Epic exec said they would make more money from non-game than game in the future. Who will pay that money? Think about it.
Not yet, but I did mention developers so UE is generating at least $100M/year for them, likely more.
The film industry is currently very very young for them, they have a lot to go. Their primary goal at the moment is to get as many productions to adopt the technology as possible. Once they feel they have a good grasp on the market, I wouldn’t be surprised if they implement a similar profit-sharing model as their game developer model.
I’m really not sure what the point you’re trying to make is.
[quote=“Midphase, post:32, topic:1317568”]
a similar profit-sharing model [/quote]
With movie studios? Nice try.
My point? Simple. Epic is becoming a big monopoly with unlimited money. Compare to this. Autodesk M&E is peanut. If anyone think Epic will be somehow remain as a good guy for CG industry. Think twice. Drug dealer also give out drugs for free for a while.
The Unreal engine has been used on numerous film projects and most studios I know worth their weight has some r&d work going on with Unreal. Epic has been actively training film industry people to learn Unreal through their unreal fellowship. In fact Epic and Unreal were a critical part of the pipeline for shows like The Mandolorian (star wars), which used entire sets made up of LCD screens to create real time digital environments which doubled as environment lighting. This is a huge evolution past the old green/blue screen approach.
It is normal to be skeptical of how they will monetize going forward, however even if it stands as it is now, they are bringing in a profit just by expanding its presence in the field. What you can bet on is that they want to disrupt the industry with its current standards, to shake things up a bit, which regardless of their long term revenue model plans is necessary.
I have. Have you? They are still using Unreal for part of the pipeline, part of which takes advantage of VR. ILM does their usual in house solution thing afterwards. Not everyone is ILM. Unreal is still part of the pipeline.
Epic games has generated 5.1 billion U.S. dollars in gross revenues in 2020, that is up from 4.2 Billion they had the year before. This comes from everything including game sales, licensing, engine royalties, and other assets. Their primary means of acquiring wealth is through royalties and application specific licensing.
No one is paying? C’mon now. You should know how wrong that is.
For the film industry, that will depend on the kind of licensing involved. There are four types of licensing that I am aware of, Standard Publishing, Standard Creators, Custom, and Enterprise.
The engine has been involved in 160 major motion pictures and episodic TV shows to date, probably more since that number was last shared. Their licensing will depend on the nature of their product and workplace, as well as if they need high level support from Epic themselves.