Ben Gilbert: commitment

Transcript context

…On Unity, no. They’re still charging a SaaS fee. Unreal now is completely free. You’re getting literally the stuff that Gears of Wars is developed on for free. Instead, the business model is switched to a 5% royalty on revenue that you would earn on your games after publishing. That’s a pretty good deal. If you think about the amount of fixed cost you’d have to capitalize on to do this, it would just be huge. Even your ongoing operating cost to run technology, it would be more than 5% of your revenue. Totally. You’d have to be massive for it to make more sense for you to build your own engine now than use Unreal, which is exactly the strategy. When you look at who develops their own proprietary game engines, it’s only the Activision Blizzard of the world, the Riot Games. But very large publishers that you know of, so think Bluehole for PlayerUnknown's Battlegrounds, which of course we will talk about later. Lots of big cross-platform 3D games from big studios that just aren’t quite as big as Activision Blizzard or Riot use Unreal instead of developing their own proprietary thing. Yup. Those are the three big moves that Epic makes after the Tencent investment, and they are all just so spot on and really enabled them to become the AWS plus Stripe plus plus plus in the industry.…

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