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Epic Games Laid Off 16% of Their Employees

Discussion in 'General Discussion' started by liquify, Oct 1, 2023.

  1. PanthenEye

    PanthenEye

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    The effect of Fornite money running out:

    https://twitter.com/ethangach/status/1713970488257413600


    If you think one megacorp is better than any other one, I have bad news for you. They will do anything when their bottom line is concerned (even with Fortnite billions in their pocket).
     
    tatoforever and stain2319 like this.
  2. Antypodish

    Antypodish

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    Isn't bandicam the video recording company?

    I have been using in the past, but it had OS compatibility issues with drives.
    I he stopped using it since.

    OBS is much better alternative.

    What else Bandicame has to offer?
     
  3. PanthenEye

    PanthenEye

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    The tweet is neither about "bandicam" or "Bandicame". Bandcamp has nothing to do with video recording. Is this an attempt to troll?
     
  4. Antypodish

    Antypodish

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    This is very bold and unnecessary, to be honest.

    I never used bandcamp, hence I get confused it with other, similarly named.

    As a music platform I have used soundcloud however.

    Either way, there isn't much Information abut the sell transaction. So it it is hard to be any indicative for reason as of financial trouble. It maybe, but It shouldnt be take as the reason.

    Since the platform has been owned for near a year (just), based on others company behaviour, it looks like Epic has mained all data they wanted and sell rest what's left they dont needed. Butt hat is just my speculation.
     
    Bunny83 likes this.
  5. spiney199

    spiney199

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    There's plenty of information about it. The staff tried to unionise. Epic decided to drop it immediately, laying off most of the staff in the process and locking the rest out of critical system infrastructure.

    If Bandcamp goes under from this I will never, ever, forgive Epic.
     
  6. Ryiah

    Ryiah

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    Just a guess here: Songtradr likely wanted them to trim some of the employees before accepting the purchase of the company.

    One corporation (I wouldn't really call Epic Games a megacorp at this point except in humor as their name used to be Epic MegaGames) can be better than the other. Every corporation lays off people from time to time especially during recessions, but not every corporation screws everyone all at once.
     
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  7. What is a megacorp if not a corporation which
    - has more than 5000 employees
    - multi-billion dollar revenue
    - has multiple subsidiaries in multiple fields
    - countless other companies are relying on it for their business
     
  8. Ryiah

    Ryiah

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    I'll give you the last two, but the first two are small scale these days. There are more than 2,570 companies larger than 6,000 employees, and more than 1,090 companies that make more than $10 billion in revenue. Both of these numbers are higher than the current estimates for Epic.

    https://companiesmarketcap.com/largest-companies-by-number-of-employees/page/26/
    https://companiesmarketcap.com/largest-companies-by-revenue/page/11/

    Maybe they're a megacorp within the confines of the game industry but that's only because most of the major players in this industry are pretty small too. Electronic Arts is the closest I can think of to the same scale.

    https://companiesmarketcap.com/electronic-arts/revenue/
     
    Last edited: Oct 17, 2023
  9. Andy-Touch

    Andy-Touch

    A Moon Shaped Bool Unity Legend

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    The Bandcamp situation is very sour. Majority of smaller musicians & bands rely heavily on Bandcamp for some sort of income because they make nothing from streaming services and touring is very expensive/time consuming for the ROI; BC offered by far the best financial cut straight to artists. Epic's baffling fumbling of the company can really damage another industry; and has made me lose alot of respect in their decision making.
     
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  10. DragonCoder

    DragonCoder

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    May be the reason why it's not financially viable enough for Epic to keep that company :/

    Same reason as for Unity to change the policies regarding the Engine...
     
  11. spiney199

    spiney199

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    Bandcamp has been profitable and stable for a long time. It's been more profitable than Spotify (some info on that here: https://components.one/posts/bandcamp-the-chaos-bazaar ).

    So profitable in fact they would have 'Bandcamp Fridays' where they would completely waive their 15% cut and let artists take 100% of the cut for any purchases on the day.

    You can't really compare it to a game engine company either. Maybe to the asset store, but there's a big difference in the amount of people who buy music (basically everyone with internet access) to people who buy assets to help develop their games (a very small portion of the developed world).
     
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  12. Ryiah

    Ryiah

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    This is an estimate of the net revenue the company is receiving not actual numbers, and even if they're accurate with how the last three years have been I wouldn't be surprised if things changed. Inflation alone went up 18%.

    That said it doesn't need to have gone into the red or even changed. Epic paid $273M which at $21M per year net revenue would take 13 years to break even. That's a long time for that money to be tied up. If they needed funds in a hurry selling one of their less profitable companies makes sense.
     
    Last edited: Oct 18, 2023
    DragonCoder likes this.
  13. Antypodish

    Antypodish

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    Is not that inflation went up only past last year. It went up since few.
    If my understanding is correct, firm had been accuired last year. So deal could be stopped before then, if evaluation was made during process years ago, before buy out.

    It doesn't make sense to buy something for huge cash, just to sell it next year, unless value of the company went far below red. Which makes me wonder, what had changed so dramatically?

    My speculation would be, that major buyers were from embargo countries, which are now at war. But I highly doubt it is the case.

    If they wanted to secure mentioned company and make it profitable, they would restructure it well before. Past few months.

    To me, such operations seems fishy to be honest. Less of about money. But sure is just my speculation and I may be as well plain wrong :)
     
  14. Ryiah

    Ryiah

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    Last edited: Oct 18, 2023