I imagine this is a mix of things. UE5 has officially been out for a while, their biggest competitor just offed themselves, Fortnite’s UE editor support is out and thus Fortnite probably doesn’t need as many devs now with UGC to pick up the slack, etc.
That’s still a huge chunk of people though. Wonder if all these financial gambles they’ve taken are starting to add up.
Epic bought a lot of companies over the last few years and they also rapidly grew. https://en.wikipedia.org/wiki/Epic_Games#Subsidiaries_and_divisions They rapidly grew and bought up all these companies in the last 5 years and are now slimming down these ventures and focusing on what they want to do with them.
Company was ‘spending way more than we earn,’ CEO said in memo
It needs a genius to see that. All those contracts for timed exclusivity, all those games given for free. Most people just play free to play games on the platform and get the games for free. I thought the idea was to eat the cost and spend more money than to earn, so they can build a loyal customer base. If that wasn’t the entire goal, what was it then? Why punish the staff (holy cow its 870 employees!) by cutting them off the company now? The store and launcher of Epic games already struggle to get better.
Unfortunately I can’t read the article on Bloomberg, as it requires an account.
All these companies that are suddenly having layoffs and/or enshittifying everything at once all shared the same basic business model (pardon the Bronze Age meme format from Slashdot…):
- Give goods or services away for free
- Attract customers on the basis of getting goods or services for free
- ???
- Profit!
Years of basically free debt service and stupid VC money let them kick the can down the road for a long time in terms of figuring out what Step 3 was gonna be, up to the point that many such services didn’t even bother, replacing both Steps 3 and 4 with “Sell to whichever FAANG is sucker enough to think they can leverage our userbase for their own product.” High interest rates have suddenly put a stop to the money party, though, and now they’re all scrambling to find ways of aggressively monetizing their services.
I’m guessing it was the goal but it didn’t work as well as they’d hoped. I’ve got a couple of the freebies but I’ve stuck mostly with Valve because most of my games are already on Steam and they haven’t seriously fucked up yet.
They made enticing incentives for developers and publishers, but what incentive would I have as a customer to buy a game from EGS rather than Steam or GOG or even Humble?
I’m guessing here because I don’t sit on Epic’s board of directors, but I would imagine their angle for consumers was mostly to grab new markets with the appeal of free games, which would also establish a library that would be a pain point if they ever wanted to move away, coupled with some of those one-year exclusives that would peel people away from Valve if they wanted to play them day-of.
But there are so many features built in to Steam that if even one or two of them are important to you, there’s less of a reason to ever default to someone else doing the same thing but less so. Like with GOG, they don’t match Steam feature for feature, but DRM-free and easy preservation of previous versions of games are good selling points that matter to people.
Epic would need to have a “import your games and achievements and saves from Steam” feature AND THEN ALSO have a much better performing app than they currently do, for me to convert. But years later and EGS is still a pretty awful user experience compared to Steam. There’s just no way.
For me, it’d also need a Linux compatibility layer on par with (or exceeding that of) Steam. On paper, I’m not a fan of Valve’s exclusive hold on that market, but in practice nothing has come close for me so far (that I know of, at least).
I tried Lutris and Wine, but I had difficulties getting stuff to run, and the fixes required patience and some level of technical understanding (of Wine, specifically, not just Linux in general). They just don’t have the same (comparatively simple) convenience of “check ProtonDB before you buy it, download game, run it, and usually it’ll work fine”.
The more advanced fixes usually involve nothing more than a few well-documented steps like copy/pasting a launch command, selecting something in a dropdown or downloading and extracting a file into some directory. It’s not a universal “It Just Works”, but I feel like it’s been getting better and better, and that’s just a headstart any competitor would have to work really hard to catch up with.
Yeah, so… being in the gaming industry really sucks right now.
Go give a hug to your local gamedev. They probably need it.
I’ve been 10 years in the industry and honestly. This feels familiar. I feel like there was mass layoffs about 4+ years ago. There was also the Boston Games collapse around 2013. I’ve been told this industry has a very direct pattern. Expand, contract, expand, contract. What you want to do is to get into it when it’s expanding and hope by the time it contracts you have enough experience to be vital to a project.
Supposedly the whole Fall Guys team at Mediatonic, who Epic just acquired, were let go. Including the game director.
I’m sure the Fall Guys owner who sold it is happy. Made bank and all it cost them was the livelihoods of all the people who made the game.
Isn’t that the startup dream? To get acquired, then bail?
Just a quick reminder that Epic is owned by Tencent.
Tencent has a minority stake in the company. Along with Sony and Kirkbi. Epic is controlled by Tim Sweeney, who has over 50% of the ownership.
Thanks for the clarification!
For real??
No, they own 40%.
Is it because of all the free games I claimed?
no, it’s because you didn’t buy enough fortnite skins
Probably because giving away free games didn’t end up selling more of the other games on the storefront.
This is why people really have to start caring about who they work for, and professionally represent. It’s a tough, very unfair lesson to learn unfortunately. But if the company you are working for starts acting unethically, trust me (as someone who has learned the hard way), it’s a slippery slope that quickly has no bottom.
Of course the little guy pays the price here, as usual, and my sincere hope is that they all quickly bounce back into better roles.
As for Epic? I hope their bottoms have no bottom.
I think we need more worker protections. Mandatory severance, can’t fire without cause.
A lot of people don’t get much choice who they work for. Basic devs and QA and now out of as job and need to scramble to find another job. It’s nice some of these are getting severance but it’s not mandatory nor the norm in America.
