"5% of gross revenue resulting from sales to users." As others have pointed out, that is a huge amount, that is probably 25 - 30% of your "profit". The accounting is pretty easy though. Units * SRP * 0.05 == royalty. That said, it is a lot simpler than investing $25 - $30K up front while building the game, only to have it go poof because the market or your designer flaked out. Figure 3 year development at $20/month t…
I call it a wash, but the lower numbers (5 vs 25, 19 vs 100) make for some good marketing. And full access to the source is new and welcome.
Also I'm not sure if this change to their royalty scheme will make any difference to their flat $400k-per-game license that the big studios probably use.