4 ms·

Honestly it makes sense. I was always a little confused that non-gamedevs had to pay 0. Of course that could've also just been the plan to get VFX and other ind

Honestly it makes sense. I was always a little confused that non-gamedevs had to pay 0. Of course that could've also just been the plan to get VFX and other industries onto Unreal Engine so Epic Games could start charging them later. I'm also confused how Epic Games has become unprofitable suddenly. I think I read somewhere it was in the last 10 weeks but I could be wrong about that.

Manfred 3y ago
The strategy is to worm your product into companies and make people comfortable with (or depend on) your tools. When there is enough adoption, you slide in and claim a piece of the pie.
- yazzku 3y ago
  Mind if I slytherin?
- slowmovintarget 3y ago
  Which is a good strategy when you don't do it retroactively, and you do give time to switch. If your product is best of breed (which UE5 is) it would make sense.
Krutonium 3y ago
It's not that they suddenly became unprofitable, it's that they're (partially) owned by Tencent, and Tencent is calling in their dues. Epic took their money to try and unseat Valve, which clearly did not work. Now the economy is taking a dip, so they need money.
- SeanAnderson 3y ago
  Why do you feel this is Tencent's doing if they're not the majority shareholder?
  - moe_sc 3y ago
    Going with the theory this is caused by a shareholder: They own 40%, the only bigger stakeholder beeing Tim Sweeney, Epics CEO and founder. [1] Assuming Sweeney wouldn't be the one causing it, Tencent is the party that would be able to cause the most financial headaches. [1] https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-epic-games/ https://www.fool.com/investing/how-to-invest/stocks/how-to-i...
to11mtm 3y ago
If I had to guess, it's a few factors. They probably overhired during 2020-2022 period like everyone else did. Additionally, AFAIR there were tax rule changes going in play this year that would change the accounting balance sheet. [0] But, the biggest one in my mind, realities of inflation/shrinkflation are setting in. I'd have to guess that my food cost has gone up enough that I could have theoretically purchased at least one or two skins with the extra money I'm spending on the same or less food [1]. I think this is a factor that is easy to be insulated from in tech, however my friends in various luxury service industries are feeling the pinch; folks cutting down on "spa days" and fancy restaurant trips. [0] - I know earlier this year a bunch of changes around how Capital Expenditures/R&D were allowed to be deducted, and in some cases it would lead to a large increase in the cost of engineers. [1] - I don't do Fortnite so I have no clue what stuff costs, broadly speaking however 10-20$ a week is a light estimate.
SeanAnderson 3y ago
I don't know about suddenly, but Fortnite makes more money for Epic than Unreal Engine and Fortnite's numbers are going down. Seems pretty easy to extrapolate from there that dials need to get turned until innovation occurs.
3seashells 3y ago
They now have to pay by include tictacto to the credit page.

Manfred 3y ago

The strategy is to worm your product into companies and make people comfortable with (or depend on) your tools. When there is enough adoption, you slide in and claim a piece of the pie.

yazzku 3y ago
Mind if I slytherin?
slowmovintarget 3y ago
Which is a good strategy when you don't do it retroactively, and you do give time to switch. If your product is best of breed (which UE5 is) it would make sense.

Krutonium 3y ago

It's not that they suddenly became unprofitable, it's that they're (partially) owned by Tencent, and Tencent is calling in their dues. Epic took their money to try and unseat Valve, which clearly did not work. Now the economy is taking a dip, so they need money.

SeanAnderson 3y ago
Why do you feel this is Tencent's doing if they're not the majority shareholder?
- moe_sc 3y ago
  Going with the theory this is caused by a shareholder: They own 40%, the only bigger stakeholder beeing Tim Sweeney, Epics CEO and founder. [1] Assuming Sweeney wouldn't be the one causing it, Tencent is the party that would be able to cause the most financial headaches. [1] https://www.fool.com/investing/how-to-invest/stocks/how-to-invest-in-epic-games/ https://www.fool.com/investing/how-to-invest/stocks/how-to-i...

to11mtm 3y ago

If I had to guess, it's a few factors. They probably overhired during 2020-2022 period like everyone else did. Additionally, AFAIR there were tax rule changes going in play this year that would change the accounting balance sheet. [0] But, the biggest one in my mind, realities of inflation/shrinkflation are setting in. I'd have to guess that my food cost has gone up enough that I could have theoretically purchased at least one or two skins with the extra money I'm spending on the same or less food [1]. I think this is a factor that is easy to be insulated from in tech, however my friends in various luxury service industries are feeling the pinch; folks cutting down on "spa days" and fancy restaurant trips. [0] - I know earlier this year a bunch of changes around how Capital Expenditures/R&D were allowed to be deducted, and in some cases it would lead to a large increase in the cost of engineers. [1] - I don't do Fortnite so I have no clue what stuff costs, broadly speaking however 10-20$ a week is a light estimate.

SeanAnderson 3y ago

I don't know about suddenly, but Fortnite makes more money for Epic than Unreal Engine and Fortnite's numbers are going down. Seems pretty easy to extrapolate from there that dials need to get turned until innovation occurs.

3seashells 3y ago

They now have to pay by include tictacto to the credit page.