Xsolla Capital has wasted little time in putting its money to work. The e-commerce platform’s capital fund has not only had its funds surreptitiously increased to $50 million, but has made a deal with Epic Games, the developers of the Unreal Engine 4, in order to “foster success” for developers who want to self-publish.
“Xsolla Capital is happy to help Unreal Engine 4 game developers deliver their titles to a wider audience. We’ve seen many independent developers embracing UE4 in new and emerging game genres,” said Dmitri Bourkovski, partner at Xsolla Capital. “Xsolla Capital is excited to be a part of bringing these next-level indie titles to existing and expanding game audiences.”
Under the terms of the agreement, Xsolla Capital will provide UE4 developers with financial support and marketing resources for their projects while also covering the costs of custom Unreal Engine licensing, which reduces the royalties paid to Epic Games and provides direct technical support via the Unreal Developer Network. In addition, UE4 developers enrolled in the program would gain access to Xsolla’s services, including payment solutions, distribution options, comprehensive storefront management, fraud protection, and user acquisition.
“Now is the perfect time for Xsolla to partner with our team to bring outstanding independent games to market,” said Mike Gamble, European territory manager at Epic Games. “Since taking Unreal Engine 4 free two years ago, we’ve seen an enormous rise in high-quality titles made by small teams, and Xsolla is able to share in that success by allowing developers to maintain creative control while receiving many of the benefits a traditional publishing arrangement would provide.”
What is not being said should also be noted. Epic Games collects royalties of 5% of gross revenue per calendar quarter from any games developed on Unreal Engine 4, and while Xsolla Capital’s consent to pay the bill for custom engines reduces royalties paid to Epic, it does not reduce those paid to Xsolla Capital. After all, the fund’s safeguards against capital risk include quarterly royalty dividends from studios that have received their investments.