The logic that Epic and Unreal Engine will do something similar as Unity doesn't track for me. The argument hinges on the premise that Epic, who operates their own game store and is courting developers aggressively with generous revenue split, is willing to burn their bridge with developers for questionable increase in profit; in addition it presumes that the plain old revenue share model that Unreal Engine utiltizes…
I don't think this is a problem of company structure. It's solely a problem of bad management. If they had listened to their users or their own developers, or any remotely sane person with some touch of reality, then this wouldn't have happened. But if you hire the former CEO of EA - a guy with no low level industry experience and who left his last job because of poor financial performance - then this whole fiasco se…
TBH I think the growth argument is better. Ricetellio isn't some especially bad CEO, and I'm sure 50 other CEOs woulda done the exact same thing if it wasn't him. Which is exactly why every other tech company was also hit with massive layoffs this year.
It's not some standout, it's the 20th consequence of actions every other public company pursued. Look at all the industries Unity tried to branch out into in 4-5 years and you see why they became balooned to 7K employees: https://i.imgur.com/3Ume4Qm.png