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Epic Games, the company behind both Fortnite and Unreal Engine, has cut over 1,000 workers from its company. Epic CEO Tim Sweeney has stated that the driver behind this move is, ironically, Fortnite (which just recently jacked up prices of its V-Bucks currency to “help pay the bills”), as the game is suffering from diminishing player engagement. Some of Fortnite’s luster has been lost in recent years, despite partnerships with big names like Disney which were meant to draw in more players and spur growth. Sadly, it seems that this has not materialized, at least not at the scale Epic needed it to, and now Sweeney says the company “[spent] significantly more” than it made.
Thus, in an effort to mitigate losses and stabilize the company, Epic has let go of over 1,000 workers, as well as made “over $500 million of identified cost savings in contracting, marketing, and [closed] some open roles.” Epic was quick to allege that these maneuvers “aren’t related to AI,” but it’s worth noting that AI continues to be implemented as a part of Unreal Engine, and Sweeney himself was apparently aghast at the thought of Steam requiring devs to disclose when games have been made with AI.
It’s worth noting that Fall Guys developer Mediatonic and Bandcamp also suffered losses from this move. Workers caught up in the layoffs will receive “a severance package that includes at least four months of base pay, with more based on tenure,” with the company “also extending Epic-paid healthcare coverage,” according to Sweeney.It’s certainly a nice gesture, but regardless, the endless layoffs in the video game industry continue apace. Stabilization remains just out of reach as AAA studios around the West, in particular, struggle to produce content that fans want to play. As we learn more, we’ll continue to update all of you.
Source: GamesIndustry.biz
