Bad news for those using Unreal Engine for VFX or animation this week – or at least for some. Epic Games has confirmed that it will begin charging industries outside gaming to use the 3D graphics engine next year. 

Until now the company has not charged directly for use of Unreal Engine. Instead it charges royalties for projects that surpass $1m in revenue – and only those that use code from the engine. That means that while the developers of big-selling games pay royalties, those who use Unreal Engine for film making and other uses pay nothing. Epic Games now plans to start charging subscription fees on a per-seat basis, but it has clarified that not everyone will be affected (also see our pick of the best 3D apps).

Speaking at Unreal Fest 2023, Epic Games CEO Tim Sweeney said Unreal Engine would become “a licensable piece of software like Maya or Photoshop” with a subscription-based pricing model. Studios using it for non-gaming work like animation, VFX and visualization will be charged through a “seat-based enterprise software licensing model”

The video above, shared from the event by the creative developer Immature on Twitter, shows Sweeney outlining the company’s sources of income, which will include licensing Unreal Engine, in the context of Epic’s recent decision to lay off 16% of its staff.

Understandably, the news has caused concern among creatives, especially independent filmmakers and non-professionals. Unreal Engine was developed as a graphics engine for gaming, but is now routinely used for real-time rendering and virtual production in everything from animation, to commercials, including by aspiring filmmakers who may not be able to pay for a subscription.

Replying to a question raised on X, Sweeney has now clarified that th