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The Gaming Industry in 2023: 5 Key Developments in Engines

The Gaming Industry in 2023: 5 Key Developments in Engines

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Unreal Engine 5 Updates and Licensing Changes

Epic Games continues to actively develop Unreal Engine 5, releasing two significant updates in 2023 – versions 5.2 and 5.3. In addition to this, the company introduced a dedicated editor for Fortnite, called Unreal Editor For Fortnite (UEFN), which launched on March 22. This tool simplifies the process of creating levels and scripts, giving players the ability to create more detailed and rich worlds in Creative Mode 2.0. The new UEFN features open up great opportunities for developers and content creators, helping to grow the Fortnite creative community and improve the user experience.

Forest Guardian Island has become part of the official 'Creative Mode 2.0' pack, Showcasing the new capabilities of UEFN. Screenshot: Fortnite / Epic Games

In the summer of 2023, Epic Games announced MetaHuman Animator, a new tool for creating custom facial animations. With the Live Link Face app for iOS, users can record animations using their device's camera and transfer them to characters created in MetaHuman Creator. The process involves scanning facial keypoints to generate a unique mesh, which can then be imported and used in Unreal Engine. This tool greatly simplifies the creation of realistic animations and opens up new possibilities for game developers and animators.

Despite its achievements, Epic Games is faced with the need to reduce its workforce. In September, the company's CEO Tim Sweeney announced the layoff of approximately 830 employees, most of whom were not associated with core projects. Sweeney noted that this decision was made due to rising expenses associated with investments in the Fortnite ecosystem and the general development of the company. The staff reduction is aimed at optimizing costs without affecting key development, which allows Epic Games to focus on its most significant projects and maintain competitiveness in the market.

At the Unreal Fest 2023 event, Tim Sweeney announced important changes to the Unreal Engine licensing. Starting in 2024, developers of non-game projects, including architectural and VFX applications, will be able to use the engine through a subscription. However, the terms for game developers will remain unchanged: Unreal Engine will be free to use, with royalties of 5% only when revenue exceeds $1 million. These innovations make Unreal Engine more accessible to a wider range of developers and open up new opportunities for content creation in various fields.

It is currently unclear how Epic Games plans to identify creators of non-game projects and what amounts they will be required to pay. Sweeney compared the new licensing model to Adobe products, suggesting that subscription prices will range from $20 to $220. It is worth noting that the technology will remain free for students and educational institutions, while indie creators of short animations will have minimum revenue thresholds. This move could significantly impact the development of the creative industry by providing access to modern tools for content creation.

The community's reaction to the innovations and the effectiveness of Epic Games' new licensing model will be assessed next year, when the company unveils more detailed terms. The new model is expected to impact the development of the gaming ecosystem and interactions with developers. It will be interesting to see how these changes will affect users and the market as a whole.

The Unity Scandal: How It Changed the Industry

In 2023, Unity Technologies attracted attention, receiving recognition from Fast Company as one of the most innovative companies in the world. However, in September, significant changes to the licensing policy occurred, which caused a widespread public outcry. These changes have become a topic of discussion in the industry and have affected developers who use the Unity platform to create games and applications.

Image: Unity Technologies

In April, the company Unity announced a new solution called Unity Industry, which replaces the legacy Industrial Collection. This toolset provides modern features for developing and scaling multi-platform applications, significantly expanding capabilities across a variety of industries. Unity Industry helps optimize processes and increase efficiency, making it an ideal choice for companies seeking to innovate and improve productivity in a rapidly changing market environment.

In the summer of 2023, developers' attention turned to artificial intelligence with the launch of two new platforms from Unity. The first, Unity Sentis, enables the integration of custom AI models, significantly simplifying the development process. The second platform, Unity Muse, is similar to ChatGPT and is designed to support developers in creating projects based on text queries. Unity Muse is currently available in paid early access. These innovations open new horizons for integrating AI into games and other projects, making the development process more efficient and accessible.

September 12, 2023, was a significant event for Unity. The company announced the introduction of a monthly fee for the Unity Runtime Fee, which provoked a strong reaction among indie developers. The new tax system depended on subscription level and sales revenue, leading to active discussions and discontent in the developer community. This decision has changed the approach to funding the use of the platform, leaving many confused about the future of their projects.

The recent statement by Unity CEO John Riccitiello has caused significant discontent among developers. Prior to this event, Riccitiello sold 2,000 company shares, increasing mistrust of his actions. Over the past year, he has sold over 50,000 shares without purchasing a single one, fueling further suspicion and discontent in the developer community. This behavior raises questions about his commitment to the company and its future.

In response to growing discontent and numerous appeals from indie developers, the company decided to change its licensing terms. The updated terms of use for Unity Editor have become more transparent and understandable, which has positively impacted developer perception of the product. This step demonstrates the company's commitment to taking community input into account and creating a more comfortable environment for working with the platform.

The question of restoring Unity's reputation and regaining the community's trust remains pressing. Developers are increasingly considering alternative game engines such as Godot and Unreal Engine. Discussions on platforms such as Reddit have revealed a divided opinion: for some, the transition to new engines has been a challenging task, while for others, it has been an opportunity to learn new technologies and improve their skills. This underscores the importance of choosing a game engine that meets developers' needs and helps them realize their creative vision.

In Q3 2023, Unity announced potential office and headcount reductions. By the end of November, 256 employees had been laid off, and offices in 14 cities were planned to close. Interim CEO James Whitehurst confirmed his intention to continue cost reductions, which could have a significant impact on the company's future. These measures are aimed at streamlining business processes in a changing marketplace and will help Unity focus on its core competencies.

Time will tell how these changes at Unity will impact the platform and the entire gaming industry. It is important to closely monitor the situation and assess the potential impact on developers who continue to work with the platform. These changes have the potential to significantly change the way we develop games and interact with our users.

Please note the following guidelines:

Updated Unity Engine Licenses: Changes and Considerations for the Unity Runtime Fee

Recent changes to Unity engine licenses have affected many developers and companies using the platform to create games and applications. One of the key changes is the introduction of the Unity Runtime Fee, which affects the financial aspects of using the engine.

The Unity Runtime Fee is a fee charged to developers for each installation of their product that exceeds a certain number. This means that companies that have achieved significant success and have a large number of users may face additional costs. It is important to note that the fee is only applied once the threshold is reached, allowing smaller studios and indie developers to continue using Unity without additional costs in the early stages.

These changes are due to the need to ensure sustainable funding for the platform, allowing the Unity team to continue developing the engine and introducing new features. However, developers should carefully review the new licensing policy and assess the potential financial impact of using Unity Runtime Fee for their projects.

Therefore, the updated Unity licenses and the implementation of Runtime Fee require developers to adapt to the new conditions, which may impact the choice of engine for future projects.

Godot Engine's Increased Popularity Among Developers

2023 has become an important milestone for Godot Engine, a cross-platform game engine ideal for developing both 2D and 3D games. In February, the Godot Engine beta was launched on Google Play, allowing Android users to create mobile games directly from their devices using versions 3 and 4 of the engine. This step opens up new opportunities for developers looking to work on projects in a convenient format and also promotes the Godot Engine in the mobile gaming industry.

On March 1st, Godot 4.0 was released, significantly improving the engine's functionality. Shortly thereafter, Godot Engine became available on the Epic Games Store. This was made possible through a successful partnership with Epic Games, supported by a $250,000 Epic MegaGrant grant. This new distribution channel will allow developers to significantly expand their audience and attract more users to their projects. Godot 4.0 offers many new features, making it an attractive choice for game developers.

Following the events with Unity in September, interest in the Godot Engine among indie developers has increased significantly. This has led not only to an increase in the number of projects created with Godot, but also to an increase in the number of people willing to support the development of this engine. Godot has always remained free and has no hidden subscriptions. The Godot Foundation is funded exclusively by donations from the community, making it an attractive choice for developers looking for a reliable game creation solution.

At the end of September, The Godot Foundation published an official statement clarifying its position on the situation surrounding Unity. The Foundation emphasized that developers should independently evaluate whether the Godot Engine is suitable for their projects. The organization also expressed support for Unity employees and condemned the negative attitudes toward them from the community. This statement emphasizes the importance of respectful dialogue in the industry and the need to choose development tools based on one's needs and preferences.

By the end of 2023, Godot Engine reached a significant milestone, receiving $50,000 in monthly donations from the community. These funds will be used to improve the engine's technology and attract new users, which in turn will contribute to the further growth and development of Godot Engine. Community support plays a key role in the evolution of the platform, enabling innovation and improved functionality for game developers.

GameMaker License Update: A New Approach for Developers

In recent months, YoYo Games has been actively updating GameMaker, and on November 21st, the company made an important announcement. The engine is now available for free use in non-commercial projects. This decision significantly simplifies the lives of indie and hobbyist developers, as monthly Indie and Creator subscriptions have been replaced with a single Professional license with a one-time payment. This makes GameMaker a more accessible game creation tool, which can attract more talented developers and contribute to the growth of the independent gaming market.

This initiative by YoYo Games represents a significant step in recognizing the developer community. In light of license changes in other popular game engines, the company has chosen a different path from the norm and made the terms of use of GameMaker more accessible to developers. This solution has the potential to set a new standard in the industry, helping to increase the number of users and develop creative potential in game creation.

Adventure game Chicory: A Colorful Tale won the award for Best Family Game at BAFTA Games 2022. Screenshot: Chicory: A Colorful Tale / Greg Lobanov

In the three years since YoYo Games joined Opera, the number of active GameMaker users has tripled. The new licensing terms create all the preconditions for continuing this growth, which will attract even more 2D game developers seeking convenient and accessible tools for creating their projects. GameMaker is becoming increasingly popular among game creators, giving them opportunities for realizing their creative ideas and simplifying the development process.

The Evolution of the Unigine Engine: Achievements and Innovations

In the summer of 2023, the Unigine development team released the updated SDK version 2.17. This update introduces improved tools, as well as stable versions of the DirectX 12 and Vulkan APIs. The new Raymarching mode significantly improves the quality of dynamic lighting, enabling the creation of more realistic content. These changes open up new possibilities for developers, helping to create stunning visual effects and improve the overall quality of projects.

An important event for the Unigine community was the annual Unigine Open Air 2023 event and the launch of a free training course for beginners. The request for such training had been long-standing. In an interview with Unigine CEO Denis Shergin, it was noted that the team took the initiative to create training materials. Since September 14, a new section dedicated to courses focused on SDK version 2.17 has appeared on the official documentation website. The course includes approximately 70 hours of training: 50 hours of theoretical knowledge and 20 hours of practical skills. This course is ideal for users with basic knowledge of C# and for those just starting to master 3D modeling. Unigine training will help beginners quickly master the necessary technologies and improve their skills in 3D application development.

This year, a significant event was the use of the Unigine 2 engine to create visualizations at the U2 concert in Las Vegas. During the performance, digital works by artist John Gerrard, rendered using the capabilities of Unigine 2, were shown on the unique spherical screen of the MSG Sphere Las Vegas. This event vividly demonstrated the engine's potential in the arts and entertainment industry, emphasizing its ability to create exciting and innovative visual solutions.

Unigine announces the release of a new SDK with many significant updates, which will be an important event for the developers. Denis Shergin, the company's CEO, said that the team is actively working on the creation of a large game, the release of which is planned for next year. This attention to the game's development has contributed to significant progress in improving the 3D engine. Key updates include support for the PlayStation 5 and Xbox Series X/S platforms, the transition to modern graphics APIs DirectX 12 and Vulkan, as well as improvements in character animation, a graphical interface update, and performance optimizations with reduced memory consumption. While the SDK release schedule for 2023 is reduced, this is in preparation for the release of Unigine 3, which promises to be a real breakthrough in game development.

This year, we have been actively working on our new major project, the release of which is scheduled for next year. This process has significantly contributed to the development of our 3D engine. Some improvements have already been implemented in Unigine 2, and other users will be able to appreciate Unigine 3, which will be released next year, reports Denis Shergin, CEO of Unigine.

Premiere of the new game engine Nau Engine

The idea of ​​creating a new Russian game engine began to be actively discussed last year, but the official announcement of Nau Engine took place only in May 2023. This revolutionary tool for video game development has generated significant interest. Since the announcement, the development team began collecting applications for participation in testing. As of October 2023, more than 12,000 applications have been received from game studios, including both novice developers and experienced IT specialists. The Nau Engine promises to be a significant step in the development of the Russian gaming industry, providing developers with powerful tools and capabilities for creating unique projects.

In mid-autumn, a large-scale presentation of the Nau Engine took place, at which the team presented key aspects of this game engine's development. Project Director Alexander Myasishchev discussed the engine's operating principles, and developer Andrey Karsakov noted that many components and the render core were borrowed from the open-source Dagor Engine, developed by Gaijin Entertainment. The Dagor Engine has been used in renowned projects such as IL-2 Sturmovik: Birds of Prey and War Thunder. It is important to note that in September 2023, part of the Dagor code was published on GitHub under a BSD-3 license, although the developers did not highlight this. The Nau Engine presentation highlights the importance of using open source technologies in game development and opens up new opportunities for developers.

The implementation of elements of the Dagor Engine was an unexpected but positive step for Gaijin Entertainment. Company representatives noted that their technologies became the foundation of the new game engine, highlighting the importance of open source. This gives developers the opportunity to create unique and innovative solutions, which contributes to the development of the gaming industry and expands creative horizons. Open source not only improves the quality of games but also speeds up the development process, which is an important advantage in a competitive market.

Nau Engine is currently in closed alpha testing, scheduled to run until February 2024. This important testing phase provides the development team with an opportunity to optimize the engine's functionality and improve its performance before its official launch. Alpha testing plays a key role in identifying and eliminating potential bugs, which ultimately contributes to the creation of a higher-quality product.

Current changes in the world of game engines

Against the backdrop of global economic challenges, the game engine market is showing steady growth. According to a 2023 study, investments in gaming technology development increased by 16.22% compared to the previous year. This confirms the high interest in game development and provides developers with the opportunity to choose a platform that suits their needs and skills. Growing investment in game engines is a sign of the industry's growth, opening up new horizons for developers and improving game quality.

  • Crytek will not release any new CryEngine updates in 2023, focusing on improvements for the shooter Hunt: Showdown and the development of the highly anticipated Crysis 4, scheduled for release next year. It is interesting that the company is actively looking for specialists to work on CryEngine, which may indicate that a new version is being prepared.
Screenshot: Hunt: Showdown / Crytek game
  • In March 2023, the 8.1.0 update for the Ren'Py visual novel creator was released, which now supports Python 3, opening up new opportunities for developers.
  • Scirra Studio introduced a new browser-based tool for creating animations, Construct Animate, in March, and in September released an updated version of Construct 3 r358, including support for icons in text and dynamic layers that change in real time.
  • The developers of RPG Maker 2 actively added new assets throughout the year, which significantly expanded the possibilities for creating in-game content.

Despite the current economic difficulties, the game engine industry continues to actively develop. It offers developers new tools and opportunities to realize their creative ideas. This progress contributes to the creation of higher quality and innovative games that meet the needs of modern users. Developers can leverage the advanced technologies and features of game engines to create unique gaming experiences, which in turn contributes to the growth and popularity of video games as a whole.

Frequently Asked Questions about Game Engines

  • Which engines are the most popular in 2023?
  • How do I choose the right engine for my project?
  • What new features have been added to popular engines this year?

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