Consumers win when companies compete with one another . They are going to support unity as well: https://www.unrealengine.com/en-US/blog/epic-2019-cross-platform-online-services-roadmap
Epic is no longer primarily an engine company but a service company, selling games and having a pretty visible store launch, so we would expect to see them dial down the engine side and dial up the supporting services side.
I think you are right about dialing up the services side, but i dont see them dialing down the engine side. I think with the success of Fortnite, and that they use their own engine to make their own games, they will keep pushing the engine forward and have the money to do so.
They'll keep their UE4 development steady. They basically make an engine doing their own thing then throw updates to the masses when they see fit. It doesn't seem to be a big burden for them. Fortnite has plenty of life left in it so they'll ride that while they work on a new IP or something and continue pulling royalties from their new store and engine usage outside of their store. UE4 still has the strongest appeal in terms of large team usage and low level accessibility. Either way, they're not sweating at all and can basically do whatever they want for the next 5 years.
agree to disagree, but time will tell i suppose. Either way seems like it could be a great service for game devs.