Epic Games, the developer behind the popular battle royale game Fortnite and theEpic Games Store, is reporting a strong financial performance despite a significant round of layoffs in 2023.
During a recent speech at Unreal Fest 2024, CEO Tim Sweeney stated that the company is financially sound and operating steadily. Sweeney attributed the layoffs, which affected over 800 employees including a large portion of the music store Bandcamp, to the company’s substantial investments and rapid expansion into the Fortnite metaverse. He acknowledged that, I was optimistic for a long time that we could make this transition without layoffs, butin retrospect, I think that was unrealistic.
Despite the challenges of 2023, Sweeney highlighted a more positive outlook for 2024, both financially and in terms of service growth. Fortnite and the Epic Games Storehave seen record-breaking concurrent user numbers. According to Sweeney, Fortnite has surpassed 110 million monthly active users, breaking previous records.
The Epic Games Store has also reached new heights, with 70 million monthly active users by September 2024, according to Steve Allison,General Manager of the Epic Games Store. This growth coincides with Epic’s announcement that it will reduce Unreal Engine royalties from 5% to 3.5% for any game launching simultaneously on the Epic Games Store, even without exclusivity. This change will take effect on January 1, 2025.
The company’s strong financial performance and user growth indicate a resilient recovery following the 2023 layoffs. Sweeney’s statement highlights the company’s commitment to its ambitious vision for the future, particularly in the metaverse space. While the layoffs were a difficult decision, they appear to have been a necessary stepin streamlining operations and enabling Epic Games to continue its growth trajectory.
References:
- IT之家. (2024, October 2). 2023 年大裁员之后，Epic Games 首席执行官称公司目前“财务状况良好”. IT之家. Retrieved from https://www.ithome.com/0/696/945.htm
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