2023-09-28 19:17:06
September 28, 2023 Today at 9:15 p.m.
The developer Epic Games, known in particular for the game Fortnite, thanks 870 workers. The group is also reselling the Bandcamp music platform, purchased last year.
Times are tough for the video game industry. Epic Gamesone of the largest private video game studios in the world, announced in an internal memo the dismissal of 870 workers this Thursday, according to Archyde.com. This represents some 16% of its staff.
Founded in 1991, Epic Games made a name for itself at the turn of the 2000s with its very popular Unreal Engine, a set of software for developing video games. In 2017, he conquered the general public with the online fighting game Fortnitewhich today claims more than 400 million users worldwide.
“The success of the creator ecosystem is a great achievement, but it implies a major structural change to our economy.”
Tim Sweeney
CEO d’Epic Games
In his announcement to staff, founder and CEO Tim Sweeney explains that Epic Games’ growth currently relies on Fortnite Creatora program that allows players to create and sell their own in-game content. “A lower margin activity” which is no longer enough to finance the company, according to the CEO, who owns 51% of the group (the Chinese giant Tencent controls 40% of the shares).
“The success of the creator ecosystem is a great achievement, but it involves a major structural change of our economy,” he wrote. “I have long been optimistic that we could get through this transition without layoffs, but in retrospect I see that was not realistic.”
Bandcamp sold after a year
Management also announces separate from two subsidiaries. The marketing company dedicated to children SuperAwesome, acquired in 2020, announced that it wanted to buy back the majority of its shares. Acquired barely a year ago, the music platform Bandcampreference for independent artists, will be resold to Songtradrwhich presents itself as the leader in music licensing management.
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Artist platform Bandcamp changes sides
Epic Games isn’t the only major studio to pass on to its organization the slowdown in sales which hits the technology sector in general. Last month, Swedish conglomerate Embracer Group AB closed the company Volition, creator of the Saints Row games. The manufacturer of Pokemon GoNiantic, announced in June that it was closing its Los Angeles games studio, part of a restructuring that eliminated about a quarter of its staff.
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