Epic Games has announced it will lay off over 1,000 employees following a significant drop in player engagement for its flagship title, Fortnite. CEO Tim Sweeney stated that the company is currently spending "significantly more than it earns," marking its most challenging period since its founding in 1991.
Declining Player Hours
Data reveals a noticeable shift in user behavior over the past year. In the U.S., average monthly playtime on PlayStation dropped from 21 hours to 16 hours. Similarly, Xbox players saw a decrease from 19 hours to 15 hours during the same period.
Financial Pressures
According to reports from Reuters and Bloomberg, the reduction in workforce is a direct response to these engagement trends and the need to stabilize the company's financial health. Despite Fortnite's cultural impact, the rising costs of operation have outpaced current revenue streams.
