yeah like whatever they do they can't beat Unity3D but anyway that is cool!
Actually, they can beat Unity3d.
Game Industry is a trillion dollar Industry (bigger than movies), and the sudden rise of small indie companies producing big profit producing games. This offers a great win win for both parties.
Unity3d is super cool. But So is Cry Engine and Unreal. They are tools. Each can make a blockbuster game, each does make blockbuster games each year.
Profit sharing of 5%. That is a great "Offer".
A game can take a considerable amount of time. Ureal understand this, they are offering the developer free development time, and share in the risk (if you make money, they make money. If you don't make money, they don't make money) Pretty cool deal.