Software
Epic Games CEO Tim Sweeney addressed recent organizational changes and upcoming alterations to the Unreal Engine pricing model during the Unreal Fest 2023 conference. Sweeney compared the adjustments to industry-standard software like Maya and Photoshop.
Discussing the recent layoffs, Sweeney emphasized that these decisions were necessary to stabilize Epic Games financially as it progresses toward its Metaverse goals. Approximately 3% of the Unreal Engine engineering team and over 30% of the business, sales, and marketing teams were affected by the layoffs.
Epic Games is committed to creating synergies between technology development for global creators and its entertaining experiences. Sweeney reiterated the company’s ambition to build an open Metaverse, with Fortnite events and collaborations serving as steps toward this vision.
Regarding upcoming changes to the Unreal Engine pricing model, Sweeney clarified that the 5% revenue-sharing model for game developers remains unchanged for titles earning below $1 million in revenue. However, a shift is anticipated for non-game developers in industries like automotive and film. Starting in 2024, Epic plans to introduce a seat-based enterprise software licensing model for these users, akin to subscription-based software like Maya or Photoshop.
While specific details and dates will be announced later, Sweeney emphasized that the new pricing model aims for transparency and reasonable cost. This adjustment is envisioned to align revenue streams more cohesively with different aspects of Epic Games’ business, particularly its engine revenue.
Sweeney also expressed ongoing support for the Epic Games Store, positioning it as a remedy for industry challenges. The company remains committed to its development and views it as a solution to issues plaguing the broader industry.
