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Redwood is Royalties-based on Oct 1

· 3 min read
Mike Seese
Mike Seese
Lead Developer @ Redwood

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.