2023-10-06 20:19:00
A Epic Games doesn’t really have good times in relation to his financial sector. According to the company’s CEO himself, Tim Sweeneyhe only became aware of the company’s problems in this regard recently, more specifically in mid-July.
It is worth remembering that it even fired more than 800 employees, in addition to announcing the restructuring of the Unreal Engine service, generating greater charges and even from people who do not work as developers. Sweeney also said that there was not much time to act after learning of the situation:
We realized that we were facing a financial problem that would have to be resolved quickly. This was really a process of reconciling our business model with the reality that eventually comes to all companies. We escaped that for a while with Fortnite and are getting back to it – but we reached a scale of around 4,000 people working while our money was dwindling. And we despair now that we have to operate in a different way to make sure we don’t go back to this kind of condition.
In general, the year has been very complicated for the company in relation to its finances. In fact, it even reached an agreement with the Federal Trade Commission to pay US$500 million in fines and refunds for users involving “unintentional” purchases due to Fortnite’s layout.
It is also worth mentioning the lawsuit that the company has against Apple, which recently had a new chapter in relation to the 30% fee charged by Apple. Even so, Sweeney did not specify the reasons that generated losses for Epic, but he spoke about the excessive expenses made by it:
We spent far more money than we made, investing in the company’s next step and the growing Metaverse-inspired ecosystem for creators in Fortnite. I was very optimistic thinking we could get through this entire transition without layoffs, but in retrospect I wasn’t realistic enough
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