Source 2 will be free; won't ask for royalties
Keep up to date with the most important stories and the best deals, as picked by the PC Gamer team.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Every Friday
GamesRadar+
Your weekly update on everything you could ever want to know about the games you already love, games we know you're going to love in the near future, and tales from the communities that surround them.
Every Thursday
GTA 6 O'clock
Our special GTA 6 newsletter, with breaking news, insider info, and rumor analysis from the award-winning GTA 6 O'clock experts.
Every Friday
Knowledge
From the creators of Edge: A weekly videogame industry newsletter with analysis from expert writers, guidance from professionals, and insight into what's on the horizon.
Every Thursday
The Setup
Hardware nerds unite, sign up to our free tech newsletter for a weekly digest of the hottest new tech, the latest gadgets on the test bench, and much more.
Every Wednesday
Switch 2 Spotlight
Sign up to our new Switch 2 newsletter, where we bring you the latest talking points on Nintendo's new console each week, bring you up to date on the news, and recommend what games to play.
Every Saturday
The Watchlist
Subscribe for a weekly digest of the movie and TV news that matters, direct to your inbox. From first-look trailers, interviews, reviews and explainers, we've got you covered.
Once a month
SFX
Get sneak previews, exclusive competitions and details of special events each month!
It's battle of the engines at this year's GDC. It's a war on two fronts: prettiness and price. In other words, what will the engine let developers do, and how much will they have to give up to do it. Unreal Engine 4, for instance, is now free to use, but requires a 5% royalty on gross revenue over a small allowance.
So how about Valve's new Source 2? Talking to RPS, Valve's Erik Johnson explained that Source 2 would be free for developers, and that there would be no royalty charge for using the engine. There is, however, still one catch. Games made in Source 2 must be sold through Steam.
That means that Valve will take their standard 30% cut for Steam distribution. Crucially, Steam doesn't have to be the exclusive distributor. Source 2 developers will be free to sell their game wherever they like, even directly, as long as they also sell through Steam.
That seems like a pretty good deal, but it's one that raises a major question: if Source 2 games must be sold on Steam, does that mean that Source 2 games instantly bypass Greenlight? If so, that could be an attractive bonus for developers looking for a guaranteed place on PC gaming's biggest distribution channel.
Keep up to date with the most important stories and the best deals, as picked by the PC Gamer team.

Phil has been writing for PC Gamer for nearly a decade, starting out as a freelance writer covering everything from free games to MMOs. He eventually joined full-time as a news writer, before moving to the magazine to review immersive sims, RPGs and Hitman games. Now he leads PC Gamer's UK team, but still sometimes finds the time to write about his ongoing obsessions with Destiny 2, GTA Online and Apex Legends. When he's not levelling up battle passes, he's checking out the latest tactics game or dipping back into Guild Wars 2. He's largely responsible for the whole Tub Geralt thing, but still isn't sorry.

