Recently, Epic Games CEO Tim Sweeney made a surprising announcement regarding a significant downsizing of the company’s workforce. Approximately 830 employees, constituting 16% of the total workforce, were terminated. This move came as a shock, especially considering the substantial revenue generated by Fortnite and the flourishing Unreal Engine licensing program.
Sweeney quickly clarified that certain segments of the company had lost alignment with their revenue streams. Despite the reliable income from Fortnite and the Unreal Engine licensing, these disconnected areas could no longer be sustained, leading to the unfortunate decision to reduce personnel.
It’s important to note that Epic Games had also invested heavily in legal battles and promotional efforts for the Epic Games Store. They sought to attract both users and game developers, even taking legal action against tech giant Apple for alleged unlawful monopoly practices. Although Apple emerged victorious on nine out of ten counts in a ruling in September 2021 (excluding anti-steering policies), Tim Sweeney remains undeterred.
Following a legal victory against Google, Sweeney received congratulations from Elon Musk, who tweeted, “on to Cupertino.” Sweeney responded cryptically, hinting at further plans. He also reminded a Twitter user that Epic Games has appealed the ruling and is currently awaiting a response from the Supreme Court.
We’ll compete, and we’ll also put Fortnite on any serious store that gives all developers an awesome deal. Steam, Microsoft, OneStore, anyone: give all developers an awesome deal and we’ll support you. The end of these ridiculous 30% fees is near. pic.twitter.com/0sxTYJdkP4
— Tim Sweeney (@TimSweeneyEpic) December 12, 2023
As the founder and primary stakeholder of Epic Games, Sweeney discussed the possibility of collaborating with Microsoft to establish an alternative store on mobile platforms. However, he emphasized a preference for healthy competition and pledged to bring Fortnite to any store, such as Steam or the Microsoft Store, that offered an enticing deal beyond the standard 30% fee.
