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Epic Games to cut more than 1k jobs as Fortnite usage falls (reuters.com)

371 points by doughnutstracks · 160 days ago · 566 comments on HN

Article summary

Epic Games is laying off over 1000 employees due to a decline in Fortnite engagement, which has resulted in the company spending more than it's making. The layoffs represent around 25% of Epic's total workforce. The company is providing a relatively generous severance package, including 6 months of health insurance and at least 4 months of pay. The layoffs are seen as a significant blow to the company, which has been trying to compete with Steam in the digital game distribution market.

Main themes

  • Epic Games layoffs
  • Fortnite decline
  • Digital game distribution
  • Company finances
  • Employee severance packages
  • Gaming industry competition

What commenters say

  • The layoffs at Epic Games are a significant blow to the company and a result of the decline in Fortnite engagement.
  • Epic's attempt to compete with Steam in the digital game distribution market has been unsuccessful, with many considering it a quixotic quest.
  • Some argue that the main problem with EA Origin was not the platform itself, but rather the company's reputation and trust issues with customers.
  • Others believe that creating a successful digital game distribution platform requires a focus on features such as discoverability, functional cart features, and robust payment options.
  • There is a debate about the importance of certain features, such as Linux support, reviews, and achievements, in a digital game distribution platform.
  • Some commenters praise Steam for its efforts to make gaming on Linux a viable option, while others criticize Epic for being hostile towards Linux.
  • The failure of companies to create a successful digital game distribution platform is attributed to megalomania and a focus on rent extraction rather than creating a clean and simple user experience.
  • The generous severance package offered by Epic Games is seen as a positive aspect of the layoffs, but some argue that it should not be up to companies to decide what is fair and that unions and laws should play a bigger role in protecting employees' rights.