this post was submitted on 22 Sep 2023
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Gaming
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"Not a bad idea" if you're the one making the money, that is.
Would you think it's a good idea if expanded to other things? How about your hammer coming with a license that if you build anything with it, you owe royalties to the manufacturer of the hammer? Or your car manufacturer saying that since they make your commute so much easier than other cars, they're entitled to 10% of your salary – but you're welcome to use another car if you don't like it (spoiler: all new cars come with similar licenses, but you're welcome to take the bus.) Do any business on your computer? Microsoft now wants 10% of your salary because time is money, but if you don't like it you're welcome to use something else. And how about your cell phone?
Because this is a "software as a service" product that actually operates sort of like a service. Technology moves fast, and the company that makes the game engine is continually adding those latest benefits for you, especially Unity and Unreal. And again, the risk of building your game is now back-loaded. Unreal is totally free up front, and Unity is dirt cheap up front (sometimes free). The revenue share model means you only pay royalties once your game passes a certain threshold of success, so their incentives are aligned with yours. This is unlike most consumer products where you may never make any revenue off of what you create with them at all, and you're paying up front. The closest analogy would be if your car was free but they only took a percentage of your proceeds if you're a professional driver, and only after you made about $10k in a quarter.