The problem is that they did it retroactively and they also added a per install/download fee. So if your game has 1mio installs you pad the install fee x 1 Million. Unreal has no install fee like this.
“A 5% royalty is due only if you are distributing an off-the-shelf product that incorporates Unreal Engine code (such as a game). Provided that you notify us on time using the Release Form, you will only owe royalties once the lifetime gross revenue from that product exceeds $1 million USD; in other words, the first $1 million will be royalty-exempt.”
Some mobile games have a ton of installs and a very small amount of revenue per user. Those 27cents per install are a lot of money for those type of games and will even make some business models no longer feasible.
“A 5% royalty is due only if you are distributing an off-the-shelf product that incorporates Unreal Engine code (such as a game). Provided that you notify us on time using the Release Form, you will only owe royalties once the lifetime gross revenue from that product exceeds $1 million USD; in other words, the first $1 million will be royalty-exempt.”
Some mobile games have a ton of installs and a very small amount of revenue per user. Those 27cents per install are a lot of money for those type of games and will even make some business models no longer feasible.