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Epic Games to cut more than 1k jobs as Fortnite usage falls

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Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#91

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

They have ~5000 employees.

Most game companies are a tiny fraction of that size. Even most AAA games are made by teams of hundreds. Not teams of thousands.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#92

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

Because games is simply not a particularly profitable industry. There's a reason why Valve moved on from making games to being a digital landlord.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#93

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

The epic store with its giveaways and exclusivity deals is probably burning money.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#94
post #92

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

Because games is simply not a particularly profitable industry. There's a reason why Valve moved on from making games to being a digital landlord.

Citation needed.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#95

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

They aren't losing money on Fortnite, they're losing money on vanity projects like the Epic Game Store where they spend tens of millions of dollars for exclusivity deals with developers, and give away free games to try to poach Steam users with an otherwise inferior product. Unfortunately it is their employees that are paying the price of leadership making it rain with their overflowing coffers they couldn't help but burn.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#97

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

The epic store with its giveaways and exclusivity deals is probably burning money.

They explicitly stated this as a reason during their last layoff cycle.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#98
post #79

Often when I see layoffs like this, I can't help but think "Wow that company has so many employees and yet, in practice, does so little". This perhaps a rather uncharitable sentiment, but I can't help but have it. Yes, Unreal Engine keeps getting improved, more Fortnite content gets produced. But there is a general lack of innovation, one that I find personally painful when I look at Epic's recent-ish track record. N…

> "Wow that company has so many employees and yet, in practice, does so little"

Some of it is real need for things like support, payments, and compliance in a bunch of languages and jurisdictions and across a bunch of platforms and combinations of platforms.

A lot of it's just that large businesses tend to be shockingly inefficient, often taking literally many hundreds of person-hours to do things that a small company or small team might do in low-tens. Coordination costs are high, processes are often really bad in ways that nobody who could fix them is empowered to, serious principal-agent problems are the norm rather than the exception, et c.

One of the weirdest things to me about the AI craze is that I don't see how it fixes organizational problems, and most big orgs are already burning more cash on waste due to those than they could possibly gain from fairly-optimistic LLM gains. Like, if they wanted to 5x development speed, they already can without a single LLM involved, by managing better. They could have done that ten years ago. All the more wild that they're flipping out over LLMs. You can't even come close to efficiently organizing the resources you already have...

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#99

Earlier quoted context omitted.

In fairness, someone has to try. We can't rely on GabeN being (relatively) benign without serious competition.

Everyone has tried already. EA, Ubisoft, Blizzard, Epic...

Most of those didn't try to create an open store. They only tried to create a store and launcher for their own products.

Re: Epic Games to cut more than 1k jobs as Fortnite usage falls

#100
post #92

> "We're spending significantly more than we're making, and we have to make major cuts to keep the company funded," he said. Sorry, HOW?!? How can a company like Epic games with one of the most successful gaming products of the last few decades be losing money with a product that is so mature? Almost every other games developer would love to be in their position on Fortnite but they've somehow turned that into a loss…

Because games is simply not a particularly profitable industry. There's a reason why Valve moved on from making games to being a digital landlord.

Is it games overall or specific genres? I always regard games that have stores and strong at UA as something else.
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