Epic Games CEO Tim Sweeney revealed that the company is planning to adjust the pricing structure for Unreal Engine, a widely used game development platform, specifically targeting non-gaming industries such as film, television, and automotive. While exact pricing details were not disclosed, Sweeney emphasized that the new licensing model would resemble those used by tools like Maya and Photoshop.
This move comes as Epic Games aims to differentiate itself from rival Unity, which faced backlash from developers for introducing a per-install pricing model that was seen as detrimental to smaller developers. Unity eventually backtracked on some of the controversial changes, but the fallout still raises questions about its future.
Sweeney also addressed the recent layoffs at Epic Games, where 16 percent of the workforce was let go. He explained that these layoffs were a necessary step for the company’s survival. Epic Games had encountered financial difficulties roughly ten weeks before this announcement, but Sweeney expressed confidence that this move had put the company on more stable footing. He also highlighted Epic’s ambition to build the metaverse, a virtual universe, through partnerships with Meta, Microsoft, and other industry giants.
One significant factor behind these changes was the reliance on Fortnite‘s revenue to support other aspects of the company. Sweeney pointed out that different parts of Epic’s business had become disconnected from their revenue streams, and the company needed to adapt to ensure financial sustainability.
Sweeney also reiterated Epic’s commitment to the Epic Games Store, positioning it as a solution to challenges faced by the gaming industry due to the dominance of mobile platforms and their high payment processing fees. Epic has been actively challenging the control Apple and Google exert over mobile payments.
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