This week we’ve learnt that Epic Games are making some expansive layoffs. Even with the news of 830 layoffs now confirmed by the dev, there’s a lot of uncertainty. There have been reports that the developer of Fall Guys was entirely shut down (despite the official statement saying otherwise). News from Epic even suggests Fortnite’s recent changes have made it less profitable. Just how will the changes Epic layoffs effect Fortnite and will the Creative 2..0 revenue sharing come to an end?
What Do the Epic Layoffs Mean for Fortnite?
Recently Epic Games has announced major layoffs, with 830 jobs being eliminated. Since then, speculation has been rife about what it means for its various games, with some reports saying the entire Fall Guys dev team has been laid off and others pointing to a more general cutback. Epic’s official statement has denied they’re shutting down any game, but they have made substantial cuts. In terms of what it means for Fortnite though, we know a little more.
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A little earlier in the year, we saw a report about internal moves at Epic over a hiring freezing. This now makes much sense with the added context of Epic layoffs in Fortnite and other games more recently. However, a few key projects were called out then as a focus. Projects Epic would still be devoting focusing on a number of key projects. These were again mentioned by Epic CEO Tim Sweeney in his statement on the Epic layoffs for Fortnite. These projects were:
Del Mar
Sparks
Juno
Next Fortnite season
The codename used here are apparently stand-ins for the leaked Fortnite Lego collab and racing mode. The next Fortnite Season and Chapter 5 being a focus along with these two projects has been known since reports earlier in the year about reorganization at Epic.
While the middle of Chapter 4 got a little rough, the current Season on the other hand has been a massive return to form. Epic has been promising big things coming too. How does this square with the recent cutbacks?
Fortnite is a Priority at Epic
Essentially, while Epic is making cutbacks it definitely feels like expansions for Fortnite are absolutely still a priority. The game has been a cash cow for the developer and keeping it in good stead is definitely going to be a priority. Just from official statements, we’re aware the upcoming season and chapter have been a development focus for a long time already. If the cutbacks will lead to worse Fortnite content, it likely won’t be anytime soon.
The bigger question seems to be with the Creative monetization sharing program. Since the launch of UnrealFN Epic has been giving content creators a cut of Fortnite revenue. This was specifically called out in the official statement as impacting Fortnite’s margins compared to past sources of growth. Although, it seems the cost-cutting may enable this to continue without many more problems.
Source: geerzy, Epic Games
A larger problem facing Epic right now has to be their legal costs. Epic is currently giving out a large Fortnite settlement after an expensive court case over monetization. All of this had to have had an impact on the developer’s button line.
It doesn’t appear the cost-cutting measures are going to have a major impact on Fortnite, at least not in the foreseeable future. Especially considering the bulk of the Fortnite legal troubles seem to be behind us. Creative 2.0 does impact how much they keep from Fortnite’s revenue. As Roblox has shown though, the creator-driven model of development can prove much cheaper than actually employing people.
It’s possible that with their record-breaking legal payout now wrapping up, and Fortnite booming in C4 S4, we’ll start to see things improve with the developer.
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