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Short answer: choose Godot if eliminating engine royalties, keeping an open-source license, and modifying the engine are your priorities. Choose Unity if you need a broad desktop, mobile, web, XR, and console workflow with a predictable per-seat subscription. Choose Unreal Engine when its capabilities and platform ecosystem justify a 5% royalty on qualifying product revenue above $1 million, or when a specified commercial use fits its $1,850 annual seat license.
The cheapest editor is not always the cheapest route to a shipped game. Your decision should account for the revenue base used for royalties, the number of seats, platform-holder approval, console SDK access, certification, porting work, and the possibility that pricing or terms change. The figures below reflect official pages available on October 17, 2026; regional taxes, currency conversion, product eligibility, and platform contracts can change the final result.
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Compare the three cost models first
Game engines generally charge in one of three ways: a subscription per user, a royalty on qualifying revenue, or no engine fee under an open-source license. These models shift risk differently. A subscription is easier to budget when revenue is uncertain but can become significant for a large team. A royalty preserves cash before launch but grows with commercial success. An open-source engine can remove the engine bill while leaving you responsible for platform access, tooling, support, and any engineering needed to fill gaps.
| Engine | Core engine charge | Revenue share or threshold | Commercial and platform notes |
|---|---|---|---|
| Godot | Free, open-source software under the MIT license | No engine royalty stated | Use, modification, and commercial distribution are permitted; console export is constrained by closed-platform licensing |
| Unity | Personal is free for hobbyists and small indie teams; Pro is $210 per month or $2,310 per seat per year prepaid | The cited plans are subscription-based; no runtime royalty is specified on the plan pages summarized here | Pro includes publishing for game consoles and Apple Vision Pro; console access still requires platform-holder processes |
| Unreal Engine | Free for game developers below the stated product-revenue threshold; a separate $1,850 per-seat annual license applies to specified commercial uses that do not run engine code for third-party end users | 5% of qualifying lifetime gross revenue above $1 million | Epic Games Store sales are royalty-free under the listed terms; console use has no Unreal fee but requires platform-holder approval and SDK access |
Do not treat the table as a complete quotation of a contract. Eligibility, revenue definitions, product categories, reporting duties, and platform agreements belong to the current license terms for your project. Use the table to identify which terms require a closer legal and financial check.
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How Unreal Engine’s royalty and seat options work
The $1 million threshold
Epic Games’ current licensing page says game developers are free below $1 million USD in gross product revenue. For qualifying products, lifetime gross revenue above that amount is subject to a 5% royalty. Epic describes the base as all lifetime gross revenue directly attributable to the Unreal Engine product, regardless of who collects it. This is not a 5% charge on only the month or year in which you cross the threshold; it applies to the qualifying amount above the threshold across the product’s lifetime.
For a hypothetical qualifying game with $1.2 million in covered lifetime gross revenue, the amount above the threshold would be $200,000 and the illustrative royalty would be $10,000 before considering any term-specific exclusions. At $3 million, the amount above the threshold would be $2 million and the illustrative royalty would be $100,000. These examples are arithmetic illustrations, not a prediction of what Epic will classify as attributable revenue.
Epic Games Store treatment
Epic states that revenue from sales in the Epic Games Store is royalty-free under the listed Unreal terms. A release that sells through multiple stores therefore needs channel-by-channel modeling rather than a single percentage applied to every receipt. Keep records that distinguish store, product, transaction type, refunds, taxes, and other items addressed by the applicable agreement.
Reporting after release
Qualifying products must submit a release notification and report royalties quarterly after shipping, according to Epic’s licensing information. Build this administrative work into your launch checklist. A team that has budgeted only the percentage payment can still miss a contractual obligation if it does not establish ownership of reporting, maintain revenue records, and file on schedule.
When the $1,850 seat license is relevant
Epic also lists a $1,850 per-seat annual license for specified commercial uses that do not use engine code at runtime for third-party end users. That is a different commercial case from a game distributed to players with Unreal Engine code running in the product. Do not use the seat price to assume that a normal consumer game has converted from royalty terms to a flat fee. Confirm that your product and distribution model meet every condition in Epic’s current license.
Console economics
Epic says there is no fee or cost related to using Unreal Engine on a console, but developers need platform-holder approval to access the necessary software development kits. The absence of an Unreal usage fee does not mean console development is free. You may still need a registered developer account, hardware, development kits, certification work, testing, porting expertise, and compliance with each platform holder’s technical and commercial rules.
What Unity Personal, Pro, and Enterprise mean for your budget
Unity Personal
Unity lists Personal as free for hobbyists and small indie teams. It is the practical starting point when you are prototyping, learning, or operating below the business thresholds described on Unity’s plans page. Free access to the editor does not waive platform-holder requirements, third-party service costs, or the labor needed to optimize and certify a release.
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Unity’s current pricing lists Pro at $210 per month or from $2,310 per seat per year. The annual figure is the listed prepaid price for one seat. A team with five annual seats would therefore have a listed subscription total of $11,550 before taxes and regional adjustments; the calculation is simply five times $2,310, not a quoted team discount.
Unity says Pro is required for businesses with more than $200,000 USD in funding or annual revenue. Treat funding and revenue as separate tests: a studio can exceed the funding limit before it has sold a game, or exceed the revenue limit while using a different financing structure. Check the current plan language for how Unity defines the business and the measurement period.
Unity Pro includes the ability to build and publish for game consoles and Apple Vision Pro. That capability is an editor entitlement, not an automatic grant of console SDK access. You still need approval from the relevant platform holder and must satisfy its account, hardware, security, submission, and certification requirements.
Unity Enterprise
Unity’s plans page says Enterprise is required above $25 million USD in annual revenue. The threshold is materially higher than the Pro threshold, so a growing studio should model the point at which its required plan changes rather than assuming the initial subscription will remain valid indefinitely. Enterprise pricing is not stated in the supplied figures; obtain a current quote and verify included support, seats, and platform services before signing.
The 2026 price change
Unity announced a 5% increase for Pro and Enterprise prices effective January 12, 2026. The listed 2026 Pro price is $2,310 per seat per year prepaid or $210 per seat per month. Regional taxes, currency conversion, and checkout rounding can change the amount charged in a particular country. Record the currency and billing cadence in your budget rather than copying a US-dollar list price into a local forecast.
Unity target platforms
Unity’s system-requirements documentation lists mobile, desktop, web, server, XR, and closed-console targets. For PlayStation, Xbox, and Nintendo Switch, developers must follow platform-holder requirements. The cited documentation states that console builds are supported only on Windows versions of Unity, which can affect build-machine procurement, continuous-integration design, and the division of work between artists, programmers, and release engineers.
Why Godot has a different licensing profile
MIT license permissions
Godot states that the engine is free and open-source software released under the permissive MIT license. The license permits personal, non-profit, and commercial use, as well as modification and commercial distribution. When you redistribute a copy of the engine, you must include the copyright notice and license statement.
The MIT license applies to the engine, not to the creative work you make with it. Godot’s licensing information says the engine does not control the content a developer creates and that developers retain ownership of their game content. You should still audit every asset, plug-in, font, codec, and third-party library in your project because those components can carry separate terms.
What “no royalties” means here
Godot is the clearest answer to the question “Which engine has no royalties?” Its engine license does not impose a revenue share or seat subscription. You remain responsible for normal business expenses such as staff, hardware, servers, storefront fees, middleware, localization, marketing, and platform costs. Removing the engine bill does not remove those other obligations.
The console limitation
Godot’s FAQ explains that the project team cannot provide an open-source console export because console manufacturers’ licensing terms prevent it. This is the central trade-off for a console-first plan. You may need an external vendor, a proprietary port, a platform-approved exporter, or an arrangement that gives your team access to closed SDKs. Budget that work before choosing Godot for a product whose launch depends on a console date.
Match the engine to your target platforms
Platform support has two layers. The first is whether the engine can produce a build for a target. The second is whether your company can obtain the SDK, meet the platform holder’s requirements, pass certification, and maintain the port. A check mark in an engine feature list addresses only the first layer.
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| Target | Godot | Unity | Unreal Engine | Budget question |
|---|---|---|---|---|
| Desktop | Engine is available under MIT terms; confirm the exact operating systems and rendering features your game needs | Desktop targets are listed in Unity’s system requirements | Desktop distribution is part of the normal game-engine use case | Which graphics APIs, operating systems, build agents, and support tools are required? |
| Mobile | Commercial use is permitted; validate device coverage, rendering features, and plug-ins for your project | Mobile targets are listed in Unity’s system requirements | Evaluate device performance, package size, and the rendering features your game needs | How many device generations must be supported, and who will test them? |
| Web | Check the exporter and browser features needed by your game | Web targets are listed in Unity’s system requirements | Confirm the browser deployment path and performance requirements for your project | Are browser memory, input, download size, and payment constraints acceptable? |
| XR | Confirm headset, runtime, and plug-in support for the devices you will ship | XR targets are listed in Unity’s system requirements; Pro includes publishing for Apple Vision Pro | Assess the headset ecosystem, rendering load, and input integrations required | Which devices and runtime versions must be certified? |
| Closed consoles | No open-source console export is supplied by the Godot team; external arrangements may be needed | Console builds are supported on Windows versions of Unity in the cited documentation, with platform-holder requirements | No Unreal fee is charged for console use, but platform-holder approval and SDK access are required | Who supplies the SDK, port, test hardware, certification, and post-launch maintenance? |
For every target, ask the platform holder or an approved development partner what access is required. An engine’s public download cannot grant rights to proprietary SDKs, publishing portals, or console hardware.
Build a project-specific cost model
Step 1: Define the commercial case
Write down whether the product is a hobby project, a funded prototype, a paid game, a free-to-play title, a tool, or a product that embeds engine technology for another business. The answer determines whether Unity’s business thresholds, Unreal’s qualifying-product royalty, or Unreal’s separate commercial seat license could apply.
Step 2: Forecast seats and years
For Unity, multiply the required number of Pro seats by the billing price and the number of years. At the listed annual rate, one seat for three years is $6,930 before taxes; ten seats for one year are $23,100. These are planning calculations using the published price, not a promise that the price will remain unchanged. Add a contingency for the 5% increase that took effect in January 2026 and for future revisions.
Step 3: Model royalty exposure
For Unreal, estimate lifetime gross revenue directly attributable to the product, subtract the stated $1 million threshold for a qualifying game, and apply 5% to the remainder. Run low, base, and high cases. Include launch discounts, downloadable content, expansions, bundles, subscriptions, and future sales only when the current license tells you how they are treated. Do not subtract costs that the royalty definition does not permit you to subtract.
Step 4: Add platform and release costs
List development kits, platform registration, certification testing, porting, localization, compliance, customer support, and live-service operations separately from the engine charge. These costs exist even when the engine has no royalty or console fee. For Godot, include the possible cost of an external console exporter or porting partner. For Unity and Unreal, include the engineering and operational work needed to obtain and maintain closed-platform access.
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A royalty can be attractive when revenue is zero and expensive when a game becomes a hit. A seat subscription behaves in the opposite direction: it is payable while the team is working, even before launch, but does not increase automatically with every additional sale. Compare both models at the revenue levels your board, publisher, or investors actually use.
| Scenario | Likely pressure point | Questions to answer |
|---|---|---|
| Solo prototype with uncertain commercial prospects | Upfront cash and learning time | Does a free tier cover the current business status, and will the target platform require a paid plan later? |
| Small commercial PC or mobile team | Seat count and workflow breadth | How many users need paid access, and which target platforms must be supported from the first release? |
| Funded studio approaching or exceeding $200,000 | Unity plan eligibility or Unreal revenue exposure | Which threshold applies now, and what evidence must be retained to demonstrate compliance? |
| High-revenue premium game | Unreal’s 5% royalty versus recurring Unity seats | What is the lifetime gross-revenue forecast, and how much does each additional seat cost over the production schedule? |
| Console-first project | SDK access, porting, and certification | Who is the approved developer, who owns the platform relationship, and what is the fallback if certification slips? |
Choose by project profile
Choose Godot when openness is a product requirement
Godot fits a team that wants to inspect and modify engine code, distribute a commercial game without an engine royalty, and retain control over its tools. It is particularly compelling when the initial targets are desktop, mobile, or web and the team can validate the exact exporters and integrations it needs. The decision becomes more complex when a closed console is part of the launch plan because the official project cannot provide an open-source console export.
Choose Unity when breadth and predictable seats matter
Unity is a reasonable fit for a team that needs one workflow spanning desktop, mobile, web, XR, and consoles, and that prefers a per-seat budget to a revenue percentage. Personal can minimize upfront editor cost for eligible hobbyists and small indies. Pro becomes the relevant plan above $200,000 in funding or annual revenue and includes console and Apple Vision Pro publishing capability. Verify the Windows-only console-build requirement in the cited documentation when planning your build infrastructure.
Choose Unreal when its capabilities justify the royalty
Unreal is most attractive when the project benefits from its capabilities and ecosystem enough to outweigh a 5% royalty on qualifying lifetime gross revenue above $1 million. It can also be suitable for a business case covered by the $1,850 annual seat license, but only when the product satisfies the restrictions on engine code running for third-party end users. The console economics are favorable in one narrow sense—Epic lists no Unreal console fee—but platform approval and SDK access remain mandatory.
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If the choice is uncertain, build a small vertical slice that exercises the riskiest requirement: a representative scene, target device, networking path, input method, or console-facing integration. Measure the engineering work your own team must perform, then revisit the license model with that scope. This is more useful than choosing from graphics screenshots or assuming that a platform label guarantees a shippable build.
Console release checklist
- Identify the platform owner. Decide which console family and region you will support and locate its current developer enrollment requirements.
- Secure approval and SDK access. Unreal requires platform-holder approval for the necessary SDKs; Unity’s console targets likewise depend on platform-holder requirements. Godot users may need an external exporter or porting arrangement.
- Confirm build-machine constraints. Unity’s cited documentation limits console builds to Windows versions of Unity. Plan hardware, source control, continuous integration, signing, and access controls accordingly.
- Assign certification ownership. Track technical requirements, submission checklists, age ratings, privacy disclosures, crash handling, suspend-and-resume behavior, storage, and account flows as a dedicated workstream.
- Budget post-launch maintenance. Console operating-system updates, SDK revisions, patches, and certification resubmissions can require engineering after launch.
Calling a platform “supported” should therefore mean that your team has a legal path to the SDK, a tested build pipeline, and a funded plan for certification—not merely that an engine has an export menu.
Licensing pitfalls that change the apparent bargain
- Confusing a free editor with a free release. Unity Personal eligibility, Godot’s zero-fee engine license, and Unreal’s below-threshold status each have different conditions. Read the applicable terms for the company, product, and distribution method.
- Using net revenue in a gross-revenue calculation. Unreal’s quoted royalty language uses lifetime gross revenue directly attributable to the product. Do not assume that marketing, payroll, store fees, or development costs reduce the royalty base unless the current agreement says so.
- Ignoring the team’s legal entity. Unity’s $200,000 Pro threshold considers funding or annual revenue. A new subsidiary, publisher advance, or investment round can change plan eligibility even before sales begin.
- Assuming console access is automatic. Public engine support does not provide proprietary SDKs, development hardware, approval, or certification.
- Overlooking redistribution notices. Godot’s MIT terms require copyright and license statements when you redistribute copies of the engine. Keep those notices with your shipped product and documentation as appropriate.
- Budgeting today’s price for a multi-year project. Unity’s 5% increase effective January 12, 2026 shows why a long production plan needs a pricing contingency. Unreal royalty and license terms can also change, so retain the version and date of the terms used for approval.
- Comparing only the headline fee. A zero engine charge can be outweighed by a custom console port, while a royalty can be cheaper than years of subscriptions for a small team with a high-revenue launch. Compare the entire production and distribution path.
A practical decision sequence
- List launch platforms. Separate desktop, mobile, web, XR, and each closed console instead of writing “multiplatform.”
- Classify the business. Record current funding, annual revenue, expected lifetime revenue, team size, and whether engine code will run for third-party end users.
- Eliminate blocked options. Remove any engine that cannot meet a mandatory platform, rendering, toolchain, or legal requirement without an affordable workaround.
- Calculate three budgets. Produce a subscription case, a royalty case, and an open-source case that includes external tools and porting work.
- Check operational ownership. Name the person responsible for license compliance, quarterly reporting where applicable, platform accounts, SDK security, and renewal dates.
- Prototype the highest-risk feature. Test the target device or platform before production locks the team into an exporter or rendering path.
- Document the decision. Save the license version, pricing date, assumptions, revenue model, platform approvals, and fallback plan. Revisit them at major funding, release, or platform changes.
Bottom-line recommendations
For a small team that wants the lowest possible engine bill and the freedom to modify its tools, Godot is the strongest fit when its target platforms are sufficient. For a studio that values a broad mainstream target list and a predictable seat expense, Unity is the more straightforward budgeting exercise: Personal may cover eligible small teams, while Pro is $2,310 per seat annually prepaid or $210 monthly at the listed 2026 prices, with the stated funding and revenue thresholds. For a project whose commercial upside and technical needs justify sharing revenue, Unreal’s 5% royalty above $1 million can be rational, especially when its capabilities or platform ecosystem are central to the game.
Make the final choice with a spreadsheet and a platform plan, not a popularity ranking. The decisive question is which combination of licensing exposure, target-platform access, team workflow, and long-term maintenance your project can actually support.
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