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  • EPIC Layoffs (was: FREE GAMES: "Model Builder" and "Soulstice")

    From Spalls Hurgenson@21:1/5 to [email protected] on Fri Sep 29 12:15:31 2023
    On Fri, 29 Sep 2023 00:30:04 GMT, Geeknix
    <[email protected]> wrote:

    I wonder what the future of free games will be after Epic announced 16% >reduction in staff. Don't know the details yet, beyond "layoffs outside
    core products", Plus the usual CEO gumph:

    "We have no further planned layoffs after this round"


    The full text of the announcement can be read here : https://www.epicgames.com/site/en-US/news/layoffs-at-epic

    Including this line: "But we still ended up far short of financial sustainability."

    Epic is also divesting itself of several sub-divisions, including
    Bandcamp.

    They are, at least, offering six-months severance to those being laid
    off.

    Yeah, /for now/ you don't. Have heard this statement once too often,
    then tomorrow they start planning next round of cuts. So the statement
    was correct for 24h. Hmm sounds a bit bitter, I just hate these
    statements, just don't bother saying anything.

    But yeah, it's the usual 'gumph'. (I like that word so I am stealing
    it. It's mine now. ;-). But it is indicative of problems at Epic,
    which has been coasting for a very long time on Fortnite profits
    without creating anything new that might replace that gravy-train of nearly-free money once it ended. Sure, they invested in Epic Game
    Store, but that was always a long-shot deal that wasn't intended to
    even see a profit for at least a decade. Licensing the Unreal engine
    also provided some good revenue... but it's also extremely expensive
    to develop.

    What Epic lacked was anything to fill the gaps between Fortnite's
    decline and their Game Store's (hoped-for) profitability. Some game or
    product that would put some immediate cash into their coffers. Of
    course, doing so might cannibalize their Fortnite revenue, and I think
    this explained some of Epic's paralysis. But now we're starting to see
    the price of their short-sightedness.

    --- SoupGate-Win32 v1.05
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  • From Dimensional Traveler@21:1/5 to Zaghadka on Fri Sep 29 11:24:29 2023
    On 9/29/2023 11:15 AM, Zaghadka wrote:

    And complaining about not being near profitability? Whose fault is that? Maybe the higher-ups should have considered taking a cut in total compensation before layoffs.

    People who think like that are not sufficiently greedy to be hired to
    make massive amounts of money for greedy, wealthy stockholders.

    --
    I've done good in this world. Now I'm tired and just want to be a cranky
    dirty old man.

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)
  • From Zaghadka@21:1/5 to Spalls Hurgenson on Fri Sep 29 13:15:19 2023
    On Fri, 29 Sep 2023 12:15:31 -0400, in comp.sys.ibm.pc.games.action,
    Spalls Hurgenson wrote:

    What Epic lacked was anything to fill the gaps between Fortnite's
    decline and their Game Store's (hoped-for) profitability. Some game or >product that would put some immediate cash into their coffers. Of
    course, doing so might cannibalize their Fortnite revenue, and I think
    this explained some of Epic's paralysis. But now we're starting to see
    the price of their short-sightedness.

    Yeah. "We got lucky with Fortnite (screw you PUBG)" is not a sustainable strategy or even a functional business plan.

    My guess is they overestimated expected growth, though. Probably too many yes-men talking to the C-levels. Exciting new plans. Too many hires. Not shortsighted necessarily, just exuberantly off-the-mark.

    And complaining about not being near profitability? Whose fault is that?
    Maybe the higher-ups should have considered taking a cut in total
    compensation before layoffs.

    --
    Zag

    No one ever said on their deathbed, 'Gee, I wish I had
    spent more time alone with my computer.' ~Dan(i) Bunten

    --- SoupGate-Win32 v1.05
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