The Financial Press also had access to a memo from chief executive Tim Sweeney to staff. “We’ve been spending a lot more money than we’re earning for some time now,” says the CEO. “I have been optimistic for a long time that we will get through this transition without layoffs, but I now see that as unrealistic.”
According to Sweeney, Epic’s recent growth has been primarily driven by its “Fortnite Creator” program, which offers “lower margins” than the company’s other revenue sources, such as the sale of Fortnite “skins,” which are purely aesthetic modifications to the online shooter. The “Creator” program allows multiplayer players to create and sell their own in-game content. 60 percent of the proceeds go to Epic and 40 percent to the creator.
Epic is headquartered in Cary, North Carolina. The company makes games, such as the hugely popular “Fortnite,” which has 400 million players, but it also develops the Unreal Engine. This is a program that can be used to design computer games.
In addition to the savings program, Epic also offers two components with 250 employees. This concerns the music platform Bandcamp and the marketing agency SuperAwesome, which Epic acquired last year and in 2020 respectively.
Epic is one of the largest privately owned gaming companies. Sweeney owns a majority stake, while Chinese technology giant Tencent owns a 40 percent stake.
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