Mario Bautista
Epic Games, the company behind Fortnite and the Unreal Engine, has officially declared that it’s back on solid financial ground. Following the unprecedented growth many tech companies experienced during the pandemic, Epic and other video game studios expanded aggressively only to find themselves downsizing once things returned to a semblance of normalcy.
After a challenging year that included laying off over 800 employees and selling Bandcamp, CEO Tim Sweeney announced at Unreal Fest 2024 that the company has turned things around. “We spent the last year rebuilding and really executing solidly on all fronts,” Sweeney said. “I’m happy to tell you now that the company is financially sound.”
Despite the turbulence, Fortnite continues to be a juggernaut, hitting a new peak of 110 million monthly active users over the holiday season. Not to be outdone, the Epic Games Store saw a record 70 million monthly active users in September, according to store GM Steve Allison.
Epic has also introduced new incentives for developers to bring their games to the Epic Games Store. Developers using Unreal Engine will now pay lower royalty fees—down from 5% to 3.5%—for any game released on EGS at launch, even if sales happen elsewhere (looking at you, Steam). Sweeney seems determined to keep developers (and lawyers) happy, as the company continues its legal battles with Google and Apple, and more recently Samsung, over mobile storefront restrictions.
While last year’s layoffs were a tough pill to swallow, it looks like Epic’s financial restructuring has paid off. Maybe they’re not quite swimming in V-Bucks, but with Fortnite’s user base still growing and the Epic Games Store thriving, the company’s financial woes are apparently officially a thing of the past.
