After conducting a survey, over 75% of the participants favored switching to a royalty fees based model. Here's what that change will look like:
- If you purchase(d) Redwood before Oct 1, you'll keep your unlimited projects perpetual license with full source code, free perpetual updates, and never owe royalties
- Indie Licensees can keep their current license or opt for a refund and switch to the royalty model
- After Oct 1, everyone can use Redwood with limited source code and 4% gross revenue royalties after $100k USD
- Custom licenses are available for full source code, console support, private/dedicated support, reduced royalty rate, and co-development
What will the new model look like?
The fine details may change as we figure out what does and doesn't work, but as it currently stands, the new royalties model will look like this:
- 4% of gross revenue
- The first royalty payment occurs at $100,000 USD gross revenue
- You would owe $4,000 USD when you first hit this milestone
- Quarterly payments start after this milestone
- This applies per company, not per project. For example, if you make 4 games using Redwood, each making $25,000 in revenue, you will still need to make a royalty payment. If you make 2 games with Redwood and 2 games without Redwood, each making $25,000 you will not owe a royalty payment. The royalties are only applicable for revenue related to projects using Redwood
- Standard licenses will include limited source code access for the UE plugins and backend
- Custom licenses are available to include full source code, console support, various levels of customer support, and a reduced royalty rate
Why the change from the Indie Program?
Ultimately, we talked to the indies interested in Redwood and the Indie Program was just not quite there. I've noticed a few common things:
- Most indies don't need full source code
- Most indies will have the least amount of available funds when they launch, with no guarantee that their game will make money
- While not perfect, in the absence of upfront cash, revenue royalties give indies flexibility with commitments only when they're succeeding
The new revenue royalties model is a good mix of accessibility and flexibility, while incentivizing us to make sure you have the tools you need to succeed.
Are there options with reduced/no royalties?
Yes! Custom licenses are available for royalty rates as low as 0%! We'll work with you directly and provide a customized quote for your needs.