In a presentation at Unreal Fest 2023, Epic Games CEO Tim Sweeney announced that the company will be increasing the price to use Unreal Engine for developers in the film, TV, automotive, and other industries. This change means that these developers will now have to pay a per-seat licensing fee, similar to subscription services like Maya or Photoshop. Sweeney assured that the pricing model will be reasonable and transparent, but this announcement comes just a week after the company laid off nearly 900 employees due to financial problems. Sweeney mentioned that Epic Games had become heavily reliant on the revenue from their signature game, Fortnite, and the decline in profits had affected other parts of the company as well.
While this pricing change may not drive away developers who rely on Unreal Engine for game development, it remains to be seen how it will be received by developers in other industries. The adoption of a per-seat licensing plan is not likely to cause much disruption, as long as it doesn’t negatively impact the existing business models of these industries. However, what developers will need to consider is if they are interested in joining Epic Games’ mission to build an interconnected online world, known as the metaverse. Sweeney expressed his commitment to this vision, but it is a goal that has been abandoned by many in the software industry.
One aspect that raises frustration is that this business shift by Epic Games comes at the expense of the employees who were laid off. Despite promises of severance bonuses and continued health insurance support, the move exemplifies the harsh reality of the game industry where people can be easily discarded. It remains to be seen how successful Epic Games’ new business model will be, but the impact on those who lost their jobs cannot be overlooked.
