Epic Games, the maker of popular video games such as Fortnite and Unreal Engine, has announced that it will cut 16% of its workforce, or about 1,000 employees, due to lower-than-expected revenue from its metaverse ambitions.
Highlights
- The metaverse is a virtual world where people can interact with each other and digital content across different platforms and devices.
- Epic Games has been investing heavily in developing its own metaverse ecosystem, which includes its own digital currency, Epic Cash, and its own NFT marketplace, Epic NFTs.
- However, the company has faced several challenges in realizing its vision, such as regulatory hurdles, technical difficulties, and competition from other players in the space.
- According to Epic Games CEO Tim Sweeney, the company’s metaverse revenue projections were “unrealistic” and “overly optimistic”, and the company needed to “adjust to the reality of the market”.
The metaverse is a term used to describe a virtual world where people can interact with each other and digital content across different platforms and devices. Epic Games has been investing heavily in developing its own metaverse ecosystem, which includes its own digital currency, Epic Cash, and its own NFT marketplace, Epic NFTs.
However, the company has faced several challenges in realizing its vision, such as regulatory hurdles, technical difficulties, and competition from other players in the space. According to a statement from Epic Games CEO Tim Sweeney, the company’s metaverse revenue projections were “unrealistic” and “overly optimistic”, and the company needed to “adjust to the reality of the market”.
We are deeply saddened by the impact this decision will have on our employees and their families. We thank them for their hard work and dedication to Epic Games and our mission of creating the metaverse. We will provide them with severance packages and outplacement support to help them transition to new opportunities
Sweeney said.Sweeney also said that the company will continue to pursue its metaverse goals, but with a more focused and realistic approach. He said that the company will prioritize its core products, such as Fortnite and Unreal Engine, and leverage its existing partnerships with other platforms and creators.
“We believe that the metaverse is still the future of gaming and entertainment, and we are committed to making it a reality for our players and customers. We will continue to innovate and collaborate with our partners to create immersive and engaging experiences that connect people across the world,” Sweeney said.
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