Epic Games, the company behind the widely used Unreal Engine, is set to revamp its pricing strategy for non-gaming industries, including film/TV and automotive sectors. Epic Games CEO Tim Sweeney made this announcement during a presentation at Unreal Fest 2023, as reported by @ImmatureGamerX via Game Developer. While specific pricing details were not disclosed, Sweeney indicated that Epic’s licensing model would be more akin to those used by software tools such as Maya and Photoshop.
Distinguishing from Unity’s Pricing Controversy
Sweeney emphasized the importance of distinguishing Epic’s pricing changes from the controversial pricing model introduced by Unity, which faced backlash from numerous developers, particularly smaller ones. Unity’s initial per-install pricing model sparked concerns about its impact on smaller developers’ viability, ultimately leading to Unity revising some of the contentious elements. The long-term effects of Unity’s softened stance on its developer community remain uncertain.
Addressing Recent Layoffs and Financial Stability
Sweeney briefly addressed the recent layoffs at Epic Games, which saw a reduction of 16 percent of the workforce. He characterized these layoffs as a necessary move for the company’s survival, citing recent financial difficulties that emerged approximately 10 weeks prior to the announcement. Despite the challenges, Sweeney expressed confidence that these actions have stabilized Epic’s finances and positioned the company on a solid footing for its ambitious goals, including the construction of the metaverse. Epic has been actively involved in partnerships with Meta, Microsoft, and others to establish metaverse standards.
Sweeney explained that Fortnite’s substantial revenue had supported various facets of the company, which had led to some segments becoming disconnected from their revenue streams. He noted that the dependence on Fortnite’s success had led to certain imbalances within Epic’s business structure.
Commitment to the Epic Games Store and Challenging Mobile Platforms
Sweeney reaffirmed Epic’s commitment to the Epic Games Store, describing it as a solution to industry challenges posed by mobile platforms imposing high payment processing fees. He criticized the dominance of mobile platforms like Apple and Google in extracting exorbitant fees and declared Epic’s determination to challenge this status quo.
A Pivotal Moment and Ongoing Support
In conclusion, Sweeney framed the current juncture as a pivotal moment for Epic Games. He expressed optimism and outlined the company’s commitment to operating differently and avoiding precarious financial positions in the future. Sweeney assured continued support for the developer community throughout the ups and downs, underlining Epic’s enduring commitment to its partners and the broader industry.
