This is the best summary I could come up with:

The company announced the changes to its payment scheme last year, and now, it’s providing details on the plan, which will come into effect with the release of Unreal Engine version 5.4 in late April.

The changes don’t apply to game developers, who will continue to pay for access to Epic’s tools via a 5 percent royalty on products that earn over $1 million in lifetime gross revenue.

Instead, the new per-seat (effectively per-user) subscription fee will apply to non-game developers such as those who use the Unreal Engine to make linear content such as film and television shows, infotainment systems in cars, or immersive experiences such as theme park rides that aren’t sold directly to customers.

Epic is exempting companies that earn less than $1 million in annual gross revenue as well as students, educators, and “hobbyists.” Companies that make plug-ins for the Unreal Engine can continue to use it for free; in these cases, Epic will continue to get its cut via the revenue share model in its Unreal Engine Marketplace.

The $1,850 annual fee includes access to both the Unreal Engine as well as Epic’s Twinmotion real-time visualization tool and RealityCapture photogrammetry software.

Epic says it’s bundling the additional tools ahead of integrating them directly into the Unreal Engine by the end of 2025, but they’ll also be available separately for $445 a year for Twinmotion and $1,250 for RealityCapture.

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