I just heard that the owner of Unreal Engine (Epic Games?) charges 5% royalties if you use it in your game. Is this true? What other "hidden costs" to use assets, program, liveries and copyright are part of the reason games are getting more expensive? Are there substantial "baked in" costs that don't even go to the company making the game, but must be paid to other companies?
AFAIK, the UE royalties only apply after the first $1M in revenue. I imagine the licenses would have a cost as well, both going to the railroads and to the lawyers drawing up the agreements. Thomas probably didn't come cheap either.