I don't think a severe price hike would make that much sense for games. The current setup of not paying anything until your product makes $1M (gross revenue)

I don't think a severe price hike would make that much sense for games. The current setup of not paying anything until your product makes $1M (gross revenue) and then 5% is obviously way too generous and will get corrected. I could see 100k and 7%. But changing the licence model entirely to an ongoing, per seat model would create a barrier to entry. The indie/hobbyist segment is very large, and a lot of these people end up working on UE for someone else if their own project fails. Lots of UE devs on the market is what Epic wants. If you charge the indies/hobbyists, you will not get more money, these are tiny companies or individuals operating on close to zero budget.