Fortnite developer Epic Games lays off 16% of staff after transitioning to the metaverse.

Fortnite developer Epic Games lays off 16% of staff after transitioning to the metaverse.

Epic Games Announces Layoffs Amid Move towards the Metaverse


Video game developer Epic Games has recently announced layoffs, affecting approximately 16% of its workforce. This decision comes as the company shifts its focus towards developing Fortnite as a metaverse-inspired ecosystem. CEO Tim Sweeney cited the transition to a creator-driven model as the primary reason for the layoffs, as it has resulted in a more distributed revenue stream for Epic Games. This move highlights the growing importance of the metaverse concept in the gaming industry.

The Metaverse: A Digital World

The metaverse is a concept that envisions a digital world where the internet becomes an immersive virtual environment for various activities such as work, play, socializing, and events. While still in its early stages, the metaverse has captured the imagination of major video game developers like Epic Games. By embracing this concept, companies aim to create expansive virtual platforms that allow users to interact with one another and engage in virtual experiences.

The Transition to a Creator-Driven Model

Epic Games’ transition to a creator-driven model reflects the changing landscape of the gaming industry. In the past, video game developers relied heavily on content created in-house. However, with the rise of user-generated content and the growing role of creators, companies like Epic Games are adapting to this trend to promote growth and engagement within their games.

In the case of Fortnite, the game has become an ecosystem for creators, where user-generated content plays a pivotal role in driving its growth and popularity. This shift has led to a more equal distribution of revenue, but it has also impacted the company’s financial stability. As a result, Epic Games has decided to reduce its workforce to align with the new revenue dynamics brought about by creator content.

The Ripple Effect on the Industry

Epic Games’ announcement of layoffs due to their metaverse-inspired transition signals a broader trend in the gaming industry. As companies recognize the potential of the metaverse, they are embracing the concept and channeling resources towards developing virtual environments that transcend traditional gameplay.

This pivot towards the metaverse reflects the changing expectations of gamers and the increasing demand for interactive and immersive experiences. By fostering an ecosystem for creators, companies can cater to a wide range of interests and tap into the creativity of their user base. This approach not only enhances user engagement but also expands revenue opportunities. However, as Epic Games’ example shows, this transition may require adjustments, including layoffs, to ensure financial sustainability.


The metaverse is ushering in a new era in the gaming industry, redefining how video games are experienced and created. Epic Games’ decision to layoff employees as part of their metaverse-inspired transition underscores the company’s commitment to adapting to the changing landscape of the industry. By embracing the concept of the metaverse and empowering creators, video game developers are setting the stage for a future where virtual worlds offer immersive and interactive experiences for players worldwide. As the metaverse continues to evolve, the gaming industry as a whole will need to navigate the challenges and opportunities that arise, ultimately shaping the future of gaming.